Editor’s Note

It remains a tumultuous time for the U.S. and world economies, and the post-deadline “fiscal cliff” deal did little to calm the waters.

Kicking the can down the road: In real estate finance circles, it’s become a common phrase for the delaying tactic employed by banks that are unable to refinance mortgages in the face of recession and tight lending practices. In the final days of 2012, kicking the can threatened to become national policy as the White House and Congress tried to strike a deficit reduction deal before spending cuts and tax hikes specified in the Budget Control Act of 2011 took effect, possibly sending the United States off the so-called fiscal cliff. Quite a challenge for the final days of President…

In the wake of Hurricane Sandy, we are once again facing the fallout from what we haven’t done, what we haven’t learned, how we haven’t prepared—and how vulnerable we are when the unexpected occurs.

It’s been a long time coming, but November is finally here, and with it — the much anticipated presidential election. Throughout the past year’s economic roller-coaster ride, real estate executives have offered a steady mantra: “Sit tight and wait until after the election.”

Every cycle brings changes to development. Back in the go-go ’80s, corporations favored elegant, high-profile headquarters, and such trophy assets attracted foreign investors, as well. That changed in the mid-’90s, as the United States emerged from recession.

It takes a record recession and tumultuous recovery to turn the real estate investment market on its ear. But when Washington, D.C., falls out of favor, one has to sit up and take notice. After all, through years of ups and downs, Washington has often been regarded as recession-proof, the market that doesn’t falter.

The dog days of summer are being dogged by less languid thoughts this year. Now that we’re solidly into the second half, cautious optimism has given way to uncertainty, and even pessimism. Consumer confidence remains shaky, and our own second-quarter CPE 100 Sentiment Survey likewise shows fading hopes among real estate’s decision-makers for short-term economic improvement.

The summer is a good time to be thinking about utilities.
After all, air conditioning in innumerable buildings is usually
blasting—and water consumption is likely higher, too, as
employees try to beat the heat.

Arguably, no property type is shaped more by demographic
trends than retail. Good thing there is more data now than
ever, too.