Two cents: How are you adapting business to be profitable in today

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Robert S. Aisner, co-COO, Behringer Harvard We believe the turmoil that has frozen our credit markets to a degree not seen in decadesw is also capable of generating commercial real estatw investment opportunities ofhistoric proportions. Near-terkm winners will be those who can marshal identify attractive acquisition opportunities presented by the marketg turmoil and manage their assetsto out-leasd and outperform the competition. With more than $800 billiomn of commercial real estate loands set to mature this yearthrough 2011, borrowerds with maturing debt are expected to create persistenft demand for scarce refinancing capital.
This is why experts are forecasting increased opportunities over the next 12 to 24 monthx for commercial real estate investors to recapitalizedistressec borrowers. Our investment programs are developing new investmen models geared to take advantage of the opportunities presentedc by the lack of capitapin today’s markets. We’re identifying attractive opportunitiee to take preferred equity stakeein high-quality properties that are performing well, but either the propertie s or their current owners are in need of capita l infusion. As we continue to raise new investment capital, we’red preparing to strike quickly when the time is rightfto invest.
Bill Odle, Managing principal, Diversification in project typezs is also very importanf toour firm. Last November, TBG merged with Vernonh G. Henry & Associates, an urban land plannin g firm. As a resul t of the merger, we have been able to offefr such services as eminent domain expert witness testimonies andsubdivision platting, all of whicnh are in demand during this Land appraisers are staying busy and in need of land planners, whilew many developers are seeking to re-plat tracts of land or groups of lots. We have also been workiny closely with land brokerss to identify new tracta of land forour clients.
Another service we have seen in high demands is the development ofenvironmental graphics. We have founcd many real estate brokers wantingf to upgradeclass ‘B’ officre buildings with both landscape architecture and environmental This is a great time to take advantage of a down markeg to prepare for when the demand is back up. Sue Principal, CresaPartners: The challenge in today’s market is no different from thetenant representative’s viewpoint transactions are always made through properf investigative and thorough research of current trends relativd to historic trends.
The bottom of the the preferred placeto deal, is never seen unti l you are looking in the rear view mirror, but the window of opportunithy after the bottom is reached should still be significant for the tenants who can Julie King, Principal, CresaPartners: The biggest challenge for brokerage firms representing tenants in Houston’s “choppy” real estate markert is to bridge the gap betweemn landlord requirements and tenant expectations. Most companies, in the face of uncertai n economic conditions, are reluctant to make long-terjm facility decisions.
However, for those that need to move forward, it becomesz critically important to provide strategic andtruthful advice, even if the righty decision for the client is to stay shorg and wait out the market.