Real estate leaders overwhelmingly agree that fundamentals are strong, lending hasn’t gotten out of hand and the market is strong—and that means there is no recession on the horizon. But, just because real estate caused the last recession, doesn’t mean that it will cause the next one. At RealShare Southern California last week, some of the speakers hinted that technology companies are at best has some financial troubles and at worst will be the purveyor of the next contraction.

On the Uncovering Hotspots – Identifying Development Opportunities in Southern California, speaker Simon Aftalion, development director at Markwood Enterprises, said technology would cause the next recession. “I don’t think that our next recession is going to be caused by real estate,” he said. “It is going to be technology, because I think that sector is acting like the real estate market did in the early 2000s.” On an earlier panel focused on capital markets, Michael Klein, co-founder and CEO at Freedom Financial Funds, also suggested that technology companies were having financial problems that could impact real estate owners. He suggested that interest rates might be the catalyst for some issues for those companies.

The Uncovering Hotspots panel included speakers Bob Sonnenblick, principal at Sonnenblick Development; Adrian Goldstein, founder at CGI Strategies; Rick Raymundo, senior managing director of investments at Marcus & Millichap; and John Petrov, president at Baldwin Construction, with moderator Marcus Arredondo, corporate managing director at Savills Studley—and many of them agreed that we were nearing the end of the cycle, even if real estate wouldn’t be its demise. Sonnenblick said, “We are at the bottom of the ninth with two outs. The game is over.” Raymundo echoed the opinion, saying, “The game is over and we are in a rain delay,” adding that a lot—at least for real estate investors—will hang on the outcome of the Costa Hawkins repeal. Petrov was more positive with his outlook, putting the cycle at the 7th inning, but adding no more commentary.

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?


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

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.