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Industry leaders forecast skittish real estate market tough financing
RY JbK KKHHOl2
jbuchholz@bizjournals com
Crystal balls usually are in high de
mand at year s end because of a desire to
know what the future will hold This year
leaves the business community—and the
real estate industry in particular —
even more questions about what s in store
for 2008 and beyond
As 2007 winds down the economy is be
ing hammered by a housing meltdown
soaring foreclosure rates tightening cred
it the looming employer sanctions law
stiffer pollution penalties and an uptick
in state and Valley unemployment
Instead of asking a psychic to read the
future the Phoenix Business Journal
asked real estate and construction indus
try experts for their take on the economy
uncertain — the good the bad andthe
Given such a dubious business and eco
nomic climate some of their answers may
be surprising
What is the greatest concern facing local
real estate and construction companies in
2008
MIKEFITZ GERALD
Managing director
Colliers International
Greater Phoenix
How deeply the subprime fiasco
will affect commercial markets
and the increasing vacancy in
all submarkets in 2008
JEFF ROBERTS
Vice president of real estate and develop
Business Journal Phoenix
Circulation: 15270
DMA: Phoenix, AZ
ment
Opus West Corp
The tightness of the credit
market has had a significant
impact on a commercial real
estate buyer s ability to obtain
a loan and therefore purchase
property This has caused real
estate values to decrease 5 percent to 10 per
cent over the last half of 2007 At the end of
the day this may be the greatest uncertainty
facing real estate companies in 2008
TIM LAWLESS
President
National Association of Office
and Industrial Properties
Arizona Chapter
Like everyone else our biggest
concern is whether we will
escape a national recession
next year While this is out
of our control how the state responds to
the slower growth is not For instance state
policy makers currently are faced with a 1
billion budget deficit for this year and a 1 8
billion structural budget deficit for next year
that will involve tough choices We will be
advocating that these choices not include
tax increases which will harm our economic
competitiveness
CROCKER LIU
City: Phoenix
State: AZ
McCord chair and professor of
real estate
Arizona State University
Whether the subprime mort
gage crisis puts the economy
into a tailspin Interest only
money has dried up and what
money can be had has more
due diligence associated with it
© Copyright 12/28/2007 Business Journal Phoenix Cision USA, Inc.
All Rights Reserved.
Unlicensed Reproduction, Sale or Republication Prohibited.
Account: 2565G0
Date: 12/28/2007
Pub Num: 12B­745
Section/Page: FRONTCOVR
Page Count: 1 / 4
RefNo: 3312a0