WE GET AROUND
Bisnow events are all the rage. In addition to our party here last Thursday, we hosted major real estate conferences in three other cities. (Our frequent flier miles are adding up.) On Friday, 400 turned out for the Bisnow DC event at the Willard Intercontinental. Top GSA and DC officials plus leaders from Brookfield, Perkins+Will, Beacon Capital, Jones Lang, Trammell Crow, and Reznick Group agreed: It’s nice to be in the nation’s capital when it’s spending money.
On Wednesday, we held our third Bisnow Chicago event: this one at the Metropolitan Club on the 66th floor of Willis Tower—which, of course, everyone still seems to call Sears Tower. (Some want us to start calling it Big Willie. But we’re pretty sure that name is taken by the guy who runs the Exxon near our house.
Legends Mike Reschke (who’s developed $11B of commercial property like Citadel Center and 77 W. Wacker) and Paul Beitler(who’s developed 10M SF of buildings, done 7000 leases including 1M SF to JP Morgan Chase, and flies his own jet planes like John Travolta) were a bit glum. They say current circumstances are unlike most of what they’ve seen in the past. Mike suggested that TARP needs some “FABRIC”: Federal Asset Backed Rating Insurance.
And, finally, our sixth Bisnow NYC conference a week ago on W. 44th. “On the mend” was the headline for the morning, suggested by panelist and NY investment sales king Woody Heller of Studley, who says it’s not sellers who are finally capitulating, but buyers. In particular, he says, offshore buyers who think they missed the boat in London and don’t want to miss it in the US. He says money is plentiful and strong assets for sale are a true commodity in short supply. In other good news: Rental rates are rising because sublet space is being taken off the market.