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TEANECK, NJ-The present state of the commercial real estate market is the result of a perfect storm of unrealistic expectations, property devaluation and corporate malaise, so said three top executives at NAIOP New Jersey’s recent chapter meeting here. 

Responding to a question by discussion leader Alex Klatskin of Forsgate Industrial Partners, Glenn Rufrano, CEO of Cushman & Wakefield, focused on risk, especially from the standpoint of funds from operations and “growth expectations” in the 2000 to 2007 period leading up to the recession. “In 2004 and 2005, in particular, the REITs thought they had to grow FFO more than they needed to,” he said. “The expectations that were created led to merchant building–or building to sell in order to boost FFO.” 

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