All-Star Lineup Says It's Buying Time in 2002

The buys may not be in Dallas-Fort Worth, but they will be coming, GlobeSt.com is told. The firm's top executives were in Dallas yesterday for the Real Estate Council's event of the year, rescheduled from Sept. 12, 2001. The panel of key executives took turns talking about how their respective firms are "biting the bullet" in the changing times while still positioning for opportunities to grow.

Aimco's Terry Considine, chairman and CEO, says his firm historically spends about $1.5 billion annually. "I expect that to continue," he said after the forum.

"It's a good time to review, analyze and underwrite," says Casey Wold, TrizecHahn president. TrizecHahn undoubtedly will sell some product this year, but it's also looking. Wold says the target markets are New York, Chicago, Washington, DC and Los Angeles. The buying strategy will unfold as TrizecHahn continues to prep for a second-quarter close to a REIT structuring of its US interests.

John Seiple, ProLogis' managing director and COO, believes 2002 "is a great time to buy." He says about $1 billion annually is usually deployed for acquisitions and development. It's not quite that high in today's world, but still some $300 million to $400 million has been set aside for 2002, up at least $140 million from 2001 when everyone's "wait-and-see" attitude kept a lid on aggressive forward advances.

As times change, so do the trends. Aimco, with its well-positioned "mature" portfolio, can't escape tenant demands for higher-end amenities and Internet hookups-practically must-haves for apartment seekers as well as owners and buyers with repositioning on their minds.

Industrial tenants are finding ways to strip costs from their books. They aren't necessarily reducing space needs, but they are reconfiguring distribution to save dollars, says Seiple. It's a trend that's big in Europe and is catching hold in the US.

As everyone knows, the office trend these days is to just sit tight and weather the storm. It will take 12 months before that sector starts to sizzle again, Wold told the 647 brokers attending the session at the Hotel Inter-Continental Dallas.

Wold says his calculations show some 30 million sf of office product delivered in five years in Dallas-Fort Worth. Of late, he says the region's "talented developers" have shown restraint. But still, that kind of development has not allowed breathing space for values to go up. His advice: "Supply constraint would be a couple terrific words for Dallas...think about it."