NEW YORK CITY-Last week’s GlobeSt.com Quick Poll asked readers about the debt terms forecast for 2011. Most saw that business conditions are improving compared to 12 months ago.
Twenty-two percent said debt and equity will be much more attractive this year, while another 43% claim that 2011 will be somewhat more attractive, indicating a slight improvement from 2010. Only 21% were unchanged while 10% said market conditions are somewhat less attractive.
At ALM Real Estate Media Group’s RealShare Real Estate 2011 Conference in Los Angeles last month, Mark Gibson, executive managing director of Holliday Fenoglio Fowler LP, stated, “If you look at the debt and equity markets, the good news is that we are a long way from where we were a year ago.” He added that “debt has clearly had an effect on pricing.”
The interest rate environment in the next two years will be low, according to panelist John Strockis, soon-to-be president of Mar Vista Real Estate andcurrently executive managing director at Voit Real Estate Services. “We are paying the price today for the future,” he warned.
Meanwhile, Bruce Mosler, chairman of global brokerage at Cushman & Wakefield, previously stated that the current economy as a recovering one.
“I think 2011 will be a significantly better year including the fact that the banks are back to the marketplace and that you are seeing people willing to develop again,” he said.
On the macro side, he and other panelists said that the gateway cities are the place where they are really seeing a recovery. “Capital is pouring into those marketplaces,” said Mosler.
To vote in this week’s poll, click here.
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