"We're trying to help clients understand that it's really aboutgetting back to basics," he tells GlobeSt.com. "By that I mean anumber of clients are going to be in a position to either buy orsell assets, and it's very important that buyers and sellersunderstand what they have."

|

The fundamentals, says Sinkuler, "have often been masked bycomplex securities wrappers, and it's important to get beneaththose and start to peel them back to understand the cash flows, theunderlying assumptions and the markets those assets operate in.Because when you peel it all back, you really get down to the realestate." He adds that transparency is key, "and the more you can doto restore confidence in whatever you're buying or selling, thebetter off your client's position will be."

|

Keeping their powder dry, increasing efficiencies and goinggreen are all very much on the minds of real estate owners andinvestors, Sinkuler says. "Everybody is trying to conservecapital," he says. "Every day we hear more statistics about thecredit crisis and its impact on the industry." At the same time, hesays, "companies are also taking a step back to identify and takeadvantage of some of the opportunities that exist."

|

While they're on the sidelines, says Sinkuler, real estatecompanies are also examining their own organizations to betterprepare themselves for those opportunities. "When things are goinggangbusters and you're growing, it tends to mask some of thecompany's inefficiencies," he says. "So smart companies are lookingat their organizations and asking how they can eliminate some ofthe duplications and inefficiencies, which they may have inheritedduring the period when growth was strong. As things start to turnaround, you can be in a position to hit the ground running."

|

Other efficiencies come into the conversation, namelysustainable practices to conserve energy. While noting that "greenencompasses a number of things," Sinkuler says, that clients at themoment are most concerned about what steps they can take now "andhow this will impact their operational costs. But there are otherconsiderations. We've had a number of executives talking about howgreen impacts productivity and how that can be quantified."

|

As more research becomes available on the relationship betweeneco-friendly buildings and gains in the productivity of the peoplewho work in them, "more people will get on board with green,"Sinkuler predicts. He adds, "To the extent that you can pass someof those benefits on to your tenants, it will start todifferentiate your building and portfolio from the rest of thepack. Going forward, a number of investors will be looking atgreen, because what's going to happen eventually is that the marketwill put a value on a portfolio that is green versus one that isnot." Along with conducting energy audits on commercial properties,E&Y is also working to increase clients' awareness of thelocal, state and federal incentives available to encourage thegreening of real estate.

|

Whether the property is green or not, Sinkuler says, it'simportant to understand where the investment opportunities are."We're telling our clients to invest with the demographics aroundthe globe," says Sinkuler. "You have the aging of the population,and the amount of urbanization is unbelievable. You have certaincountries where the middle class is going to rise, and that isgoing to create opportunities. If you look at the populations inIndia and China, those people are going to need places to live,work and shop. Those are going to create opportunities regardlessof any type of crisis."

|

Sinkuler has more than 22 years' industry experience and servesas E&Y's global markets leader for the real estate practicebased in New York. According to a release, Sinkuler has writtennumerous lectures on emerging global real estate trends and hasproduced various global real estate industry thought leadershipreports for E&Y. He will continue to serve key global accountsin his new position.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.