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CHICAGO NEWSPAPER MOGUL PREDICTS SPRING 2009 RECOVERY

January 4, 2009 on 12:19 am | In Uncategorized |

CHICAGO NEWSPAPER MOGUL PREDICTS SPRING 2009 RECOVERY

Financial mogul Sam Zell, owner of the Tribune Co., recently told an Israeli business conference that the U.S. real estate market will be in recovery by spring 2009.

Zell blamed the current crisis – at least in part – on ill-considered decisions. Optimistically he shared the fact that the U.S. population is growing and with fewer than 600,000 building starts in 2008, a million fewer than any of the last 10 years, demand for housing will rise.

“We are living through our first Blackberry recession where, literally, information is instantly disseminated around the world and people, in effect, respond to it, perhaps, often without any particular caution or attention,” he said.

Immediate communication gives new meanings to the terms buy and sell.

FYI…Zell’s Tribune Co., declared Chapter 11 bankruptcy last week.

Source: http://www.realtor.org/rmodaily.nsf/pages/News2008121505

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Vacancies Up, Leasing Down in South Florida

Vacancies in South Florida’s office and industrial markets are up this year, while leasing is down compared to last year. Further complicating matters is the decision by a number of companies to sublet millions of square feet in the area. According to research compiled by Cushman & Wakefield, Broward County had the largest industrial vacancy rate in the area, at 6.8% at the end of Q3. Some 3.6 million sf of new space came on line in the region.

Comment by Commercial Real Estate Direct — January 5, 2009 #
Is he a friend of Bernie Madoff?

Comment by Motor Man — January 5, 2009 #
Real Estate Implications
The coming year will be challenging for the real estate industry, as it weathers the obstacles facing the general economy. A second-half recovery in the US economy, and late 2009 or early 2010 resumption of employment growth, means the US real estate industry faces at least another year of difficulties and probably a bit more. No market is immune to the current downturn. Pressure on vacancy will be upward,
especially for those markets that are most dependent on financial services and manufacturing, but all markets will be affected.
The recovery in real estate is likely to take place in 2010 and will vary by market. One silver lining to current conditions is the relative lack of new construction. With little new inventory coming on line, the industry entered the current downturn in better condition than we have ever seen, and should recover more quickly than we have seen in the past when recovery does emerge.

Comment by Cushman & Wakefield — February 3, 2009 #
By the end of the housing downturn, nearly 62 percent of the nation’s 381 metropolitan areas will have experienced double-digit-percent declines in house prices, peak-to-trough, says the report by Moody’s Economy.com chief economist Mark Zandi and a team that includes Celia Chen, senior director of housing economics.

Comment by Moody's Economy.com — February 8, 2009 #
Where is the justice in the pure GREED that was exhibited by the banks and just WHY should future generations be paying for these greedy so called executives??

This view is absolutely right — there is no justice here. Taxpayers should not be in this position. But the bailout isn’t about justice. It’s about survival. The central thesis of the article was that without government help, there was a good chance that our banking system would collapse, and that would result in unbelievable pain for all of us

Comment by Richard Gibbons — February 21, 2009 #
The new, new reality - more with less - is here to stay.

Comment by S. Claire Conroy — March 5, 2009 #
Prices in Ireland were down 9.1% in 2008, and Similar bubbles have popped all over Europe. In Norway, prices are down 7.5%. France saw a 9.9% dip. Even Germany, with debt-conscious consumers that helped it avoid a correction, saw its housing market contract by 2.2% last year.

But at the bottom of the heap lies the Baltic nation of Estonia. Once one of Europe’s fastest-growing real estate markets, property prices there fell by a massive 23% in 2008 after growing by 18% in 2007.

Comment by Parmy Olson — March 5, 2009 #
Los Angeles is certainly a unique city. It typifies globalization because there is no predominant ethnic group; there are only minorities (Johnston, Poulsen, and Forrest 2006, 318). This dominant pluralism allows one to view L.A. as a prime example of a world city. Los Angeles is a city of the future. A description of Los Angeles could be a combination of enclaves with high identity and multi-enclaves with mixed identity, and, taken as a whole, it is perhaps the most heterogeneous city in the world (Johnston, Poulsen, and Forrest 2006, 318). By measuring the census blocks of L.A. the segregation of the city can be fully explored.

Comment by Urban Residential Geography — May 6, 2009 #
You don’t have to put credence in the futures market to make a rational decision about whether to rent. Just calculate the earnings yield on a house. Keep renting (or, if you own, sell) if the earnings yield is lower than 3%. Be a buyer if the earnings yield is higher than 4%. In between be influenced by whether you think rental values will hold up over the next decade.

Comment by Forbes — May 8, 2009 #
What we’re seeing now is some renewed optimism, and it could develop into something, but it’s still too early to know. In the Great Depression we had a recovery after ‘33—it wasn’t a full recovery, but it was a recovery. So it’s entirely plausible that we could be there soon. But a full recovery didn’t come until 1947/1948. We really messed up our system for now, and it’s going to be hard to have a full recovery. But we could have further gains in the stock market and an end to the home-price declines.

Comment by Robert Shiller — May 15, 2009 #
Governor Schwarzeneggar’s proposed $14 million budget cut which would completely eliminate funding statewide for vital programs that primarily or exclusively serve older adults. In Los County, alone, this would impact thousands of seniors and caregivers. There are an estimated 882,000 seniors age 60 and above living in Los Angeles County.

The proposed budget cut comes on the heels of the Governor’s eliminating last Fall the State’s $6 million budget for the long-term care Ombudsman program, which provides advocacy services for residents of long-term care facilities. The proposed additional cuts on the “chopping block” would eliminate funding for such critical services as food distribution, Alzheimer’s care, care management, support to working families with caregiver obligations, adult day health care, the Senior Companion program, and more.

“Eliminating aging programs will only shift millions of dollars in expenditures, as many older persons become inappropriately placed in nursing homes,” said Grace Cheng Braun, president and CEO of WISE & Healthy Aging in Santa Monica, and one of the Senior Stand-In organizers. “We strongly believe that as the demographics of California begin to shift to an aging society, that it is crucial that we commit the necessary resources to helping frail older persons remain in the community and live with dignity and independence.”

Comment by WISE & Healthy Aging — June 18, 2009 #
[...] http://www.socalmultiunitrealestateblog.com/?p=201 [...]

Pingback by Southern California Office Real Estate Blog » SAM ZELL’S INVESTMENT STRATEGIES — December 4, 2009 #
One of the great overstatements in history is that real estate is inflation protection. It was, is and always will be supply and demand. The opportunity investor felt that the market was simply in a “demand recession.”

Comment by Sam Zell — April 21, 2010 #
[...] http://www.socalmultiunitrealestateblog.com/?p=201 [...]

Pingback by Socal Multiunit Real Estate » SAM ZELL’S INVESTMENT STRATEGIES — July 15, 2010 #
investment advice for seniors…

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Trackback by investment advice for seniors — August 19, 2010 #