Free trade enables economies to realize their greatest potential, but heads of state are not taking this long view when establishing protectionist measures in response to the current downturn. Industrial real estate companies are keeping a close watch because global trade levels and demand for distribution facilities are highly correlated, as I have explored in previous columns. The $787 billion stimulus plan that President Obama signed on Feb. 17 originally contained a “Buy American” provision, raising the specter of protectionism. This clause generally limits the use of foreign building materials for infrastructure projects funded by the package, bringing troubling reminders…

When President Obama travels to Mexico next month to meet his counterpart, Felipe Calderon, a trade dispute between the neighbors could be on the agenda. At issue is a controversial pilot program permitting Mexican truckers to bring goods into the United States. Part of the North American Free Trade Agreement, the program expired this month when Congress omitted funding from a $410 billion spending bill. Mexico retaliated on March 18, slapping tariffs on exports of some 90 U.S. products that are valued at about $2.4 billion annually. Representatives of the White House and Capitol Hill are developing a proposal to…

Given the current state of the debt markets, Fannie Mae and Freddie Mac are widely perceived to be the only two viable sources of debt financing for multi-family rental assets. While these two government agencies continue to be the primary sources of financing for these assets, there are a variety of alternative lenders and capital sources willing to lend on stabilized and value-add assets. As Fannie and Freddie become more conservative and subjective in their underwriting, we have seen a recent increase in activity from the U.S. Department of Housing and Urban Development for cash-flowing market-rate assets. There is often…

With at least 36 states anticipating local, regional or statewide water shortages by 2013, the potential for water reuse is rising in importance. Indeed, population growth and climate change are only likely to exacerbate the problem. To that end, Central City Concern, a Portland, Ore.-based non-profit affordable housing provider, in March released a study targeted at determining whether development and maintenance of affordable housing projects can be helped by encouraging water reuse. Central City Concern and partners SERA Architects, Interface Engineering and Gerding Edlen Development Co. wanted to achieve water independence at an affordable housing project, the Pearl Family Development….

Recently, attention has been focused on Manhattan, as the financial crisis gripping much of the country continues to hollow out its largest office market. But New York is not alone in what is now a global recession. Other leading financial centers–including London, Tokyo, Frankfurt, Hong Kong, Shanghai and Singapore–have all taken a very big step backwards as investment banks scale back and layoffs from all corners of financial services ensue. By most measures, New York is suffering commensurately with nearly all other financial centers around the world.Almost every major financial center is now characterized by rising vacancy and falling rents….

A few positive economic signs—including February increases in housing starts and new home sales, along with orders for durable goods—offer hope that the deepening of the recession may be slowing. Even February retail sales declined just 0.1 percent from January sales, which was less than expected. And with less federal income tax being taken from paychecks beginning April 1, consumers will have a few more dollars to spend each month. Unfortunately, for every positive sign, there is a negative indicator that is just as weighty. Fourth quarter 2008 GDP was revised slightly downward from the previously reported decrease, the weakest…

Encouraging words seem harder to find about retail than about any other property sector these days, and the analysts at RREEF Research would hardly be mistaken for Pollyannas. Nevertheless, a new forecast from the Deutsche Bank affiliate finds reasons to sound a few modestly upbeat notes. “Good news does exist for the retail sector,” RREEF Research stated in an analysis published last week as part of a commercial real estate investment forecast, offering neighborhood and community centers as particular beneficiaries. An average of 25 million square feet of new product came on line in the category while retail was booming…