NEW YORK CITY-The risk factor needs to become a bigger factor when assessing the viability of deals, panelists at RealShare Net Lease noted. “People have forgotten about risk,” said Gordon DuDan, president and CEO of WP Carey & Co. “Lending has been pushed to the wall.” Other issues that threaded through various panels and presentations included cash flow, replacement costs, shareholder activism, supply and living in the post-Enron world.

Will Eglin, Lexington Corporate Properties Trust CEO, said his firm in the recent months has become a net seller. “We slowed down our acquisition pace. Until cap rates come up, we’ll continue to be a seller.”

There has been a pricing shift in short-term deals, Bruce MacDonald, president of Net Lease Capital Advisors, pointed out. “Many are sitting on the sidelines, waiting it out. But that won’t be in the long term.”

Michael Ashner, chairman and CEO of Newkirk Realty Trust said tenants have become “more powerful than they were 10 years ago.” He also predicts that the market will become more creative. “Something’s got to give.”<p.Replacement costs are an issue that is being watched "closely," according to Laurie Hawkes, president of US Realty Advisors LLC. The parties in the deal need to "maintain discipline." She expects that shareholder activism will continue to become more of a factor. "It's becoming a bigger issue, shareholders are putting on the pressure."

Ethan Ness, principal of CRIC Capital, sees a possible evening out of the market to factor in risk. ” We’ve had it so good for so long. The global market will recede and we’ll not be on auto pilot as we have been. It‘s been an absurdly overheated marketplace.” And Jeff Hughes, senior director, Stan Johnson Co., said he’s seen a lack of exit strategy. “ They need to understand balloon and residual risk.”

“There’s a whole confluence of events,” commented W. Kyle Gore, managing director, RBS Greenwich Capital. “It’s doing business in the post-Enron world.” Barclay Jones III, executive vice president at iStar Financial, added that corporations are requiring flexibility in deals.

Approximately 230 industry professionals attended the conference, which was produced by Real Estate Media. The firm is publisher of Real Estate Forum and

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.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


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.