Much of the talk about real-estate focuses on the floundering residential market. "Squawk Box" checked in with experts about the commercial market to see how it's doing in this weak economic enviornment.
“Even though the fundamentals of the commercial market have been incredibly strong, even now with the layoffs that are happening - and we’re beginning to see space come back to market - even with that, we’ve never been in a better environment to take what’s coming because we haven’t been building that much commercial and in fact vacancy is down.”
-Mary Ann Tighe, NYE Tri-State Region CEO
"Construction lending for commercial real estate has slowed down and is much more difficult. I would not say it’s dead. It depends on the market place. The wild days of the last four or five years when you could decide you wanted to be a real estate developer, walk into a bank, get a loan for about 103 percent of the value of the project and commence building, those days are gone.”
-Daniel Tishman, Tishman Construction Corporation Chairman & CEO
“Energy is the bright spot in North America and we are the major landlord in Houston, where we own 20 percent of the buildings in downoktown. In Calgary, we own 30 percent of the buildings, which is the energy capital of Canada, to a lesser extent Denver. Those markets, with oil $120, $130 a barrel, profits are up, they’re reinvesting money in the business. They’re expanding. They need new office space. We’ve seen rent climb 50, 60, 70 percent in the last several years.”
-Ric Clark, Brookfield Properties President/CEO
"At the moment (construction at the World Trade Center site) is on spec, and it will continue to be that way, for a while. It's the methodology we've used many, many times in my career. We did the original seven on spec back in 1987. We did the present one on spec, and they both turned out very successfully."
-Larry Silverstein, Silverstein Properties CEO & President