CHICAGO-If the real estate world needs one more assurance that current global troubles are not impacting the property troubles, then the presenting companies at the National Association of Real Estate Investment Trusts' REITWeek 2010 here are trying to soothe those worries. Just about every official from every trust at the conference here said that while they were initially concerned, issues with the Euro, Iran, North Korea, Israel and other global conflict are not having a negative effect on business.

Fore example, Guy Jaquier, president, Europe & Asia for San Francisco-based AMB Property Corp., said his global supply chain tenants are moving boxes faster than in years past. “World strife is not changing usage patterns. We’re still out there signing leases. I woke up this morning for this to see emails about two more leases we put together. People are still pulling the trigger,” he said.

David Atkins, chief executive of London-based Hammerson plc, said tenants really have no other options if they want to continue to make money. “Basically, retailers need to grow. The only way they can grow is to cut costs or improve marketing, which they’ve done as much as they can, or add square footage,” he said.

Even US-based firms are encouraged to brave the storm and invest outside the country, said Sam Zell, chairman of Chicago-based Equity Residential. “My attitude is that the only reason you leave the United States is to achieve higher growth. You ask about Brazil. Let’s just say this: David Simon of Simon Property Group would be smiling, happy, with 3% same-store growth here. Any retailer in the United States would be happy with that number. I’m getting 12% same-store growth in Brazil.”

Zell said other world markets are somewhat overhyped, such as China, which is reliant on US debt anyway, and India, which is mired in beaurocracy. He said he has no desire to go into Europe. “Europe is on its way to becoming Disneyland. They make some good wine and cheese there…but nobody does or makes anything. As for Russia, I’m not brave to invest in that market,” he said.

South of the United States is still considered a good bet, the companies agreed. Daniel Hurwitz, president and CEO of Beachwood, OH-based Developers Diversified Realty Corp., agreed with Zell that Brazil is a great market. “Everyone who has invested in Brazil retail has been very happy. We’re also bullish on Puerto Rico, we just helped TJ Maxx and Pet Smart get on the island,” he said.

David Henry, president and CEO of New Hyde Park, NY-based Kimco Realty Corp., said his firm is just finishing the lease up of a $1 billion portfolio in Mexico. “It’s something we’ve been working on for the past seven-to-eight years. Most of the retail centers are completed. Leasing there is the same as it is here, it’s picked up dramatically, including the large tenants such as Wal-Mart and Home Depot, and the local stores.”

It’s both disappointing and promising that world volatility can actually help the US property market, such as keeping interest rates low, said Michael Fascitelli, president and CEO of Vornado Realty Trust. "When uncertainty happens, there’s a flight to quality, and a flight to US debt. This turmoil that we’re seeing right now may make our property more valuable in the short term. Scariness creates opportunity, but you still have to be cautious.”