Experts Take Pulse of Commercial Real Estate Recovery

With credit still tight for investors in commercial real estate, CNBC sat down with real estate moguls Bill Rudin and Steven Roth to discuss the sector and the pace of recovery.

Long Road to Recovery

"What's happened is after a vicious, very sharp down draft, we are now in a process of seeking a bottom. And that bottoming process can probably go on for two years, maybe even longer."

Steven Roth, chairman of Vornado Realty Trust

"In terms of commercial real estate in New York, we're seeing activity. That's the positive sign; that there're people now as opposed to six months ago when there was no commercial leasing. In the third quarter of '09, there were 12 major leases signed over a hundred thousand feet in New York City."

William Rudin, President of Rudin Management

Need for Foreign Investment

"FIRPA (Foreign Investment Real Property Act) creates a double taxation for foreign investors. There're literally billions and billions of dollars of money waiting offshore to come and buy real estate in America... If you have some modification, if the government changes the rules and lessens the tax implications on foreign investors, you will start seeing, I think, a lot of people buying."

William Rudin, President of Rudin Management

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