12 STEPS

Start ticking off the days until 2011. That’s when Grubb & Ellis gurus think the CRE recovery will begin. We’ll hit bottom this year and according to the 12-step program (AA stands for Architects Anonymous, right?), then there’s no place to go but up.
 

Grubb's Mike Landon (our efforts to call him “Little Joe” were thankfully met with a laugh) and Moody Younger. It was a bonanza of info as Moody previewed the year: uncertainty in '09 handcuffed people from making decisions. This year will return to a more stable business environment; deals are being made, they’re just more cautious in their choices. With four kids ranging from 6 to 13, Moody knows 2010 holds a steady stream of volleyball, soccer, basketball, baseball, and lots of chauffeuring.

Yesterday, we snapped G&E offices in Lincoln Center Tower 3. Moody’s take: The investment side depends on capital, debt, the asset, and if the lender has an operator it’s comfortable working with.Getting capital will be the primary challenge for investors in 2010. Capitalization rates, currently ranging from 8-10% depending on product type, will continue to rise as investors seek higher yields. For the most part, buyers looking to make acquisitions should plan to hold their property longer to realize profitable investment returns.

This formation resembles our cell phone bars as we ride into more rural areas; it’s actually the industrial team: Robert Fulford, Blake Anderson, Blake Matthews, Mackenzie Schriber, Brock Wilson, and Gary Lindsey. G&E’s take on the industrial market: 1.1M SF of industrial space will be delivered in 2010; absorption is expected to remain weak, increasing vacancy to 13%; landlords will offer aggressive lease incentives, at least in the first half of 2010; tenants should lock in long-term sooner rather than later. The DFW Airport,Great Southwest/Arlington, and North Fort Worth submarkets are expected to maintain current occupancy levels—83.8%, 84.1% and 88.3%, respectively, as trade activity resumes by year's end.

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