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HOME > Marketplace Reflections > issue 112
"People are always blaming their circumstances for what they are. I don't believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can't find them, make them.
" Marketplace Reflections: Issue 112We hope you enjoy this issue of Marketplace Reflections. Dudley & Associates has been engaged in Executive Search and Recruiting since 1983. Our web site is www.dudleyandassoc.com. The phone number is (972) 265-7915. ANNOUNCEMENTSOPPORTUNITIES311 S National Partner, Build-To-Suit(Denver, CO)Our client has an outstanding record of providing quality BTS development services to corporate clients nationwide. Product types include industrial, office and medical. Your role as an equity partner is to provide team leadership and business development to fan and increase an already blazing fire of opportunity for the company and yourself. Bring your expertise and passion, and set them free in a dynamic private firm. If your successful record of accomplishments includes serving the Fortune 1000 in this manner, you might want to strongly consider this unique opening. Your confidentiality is secure. Contact Sayres Dudley at asdudley@dudleyandassoc.com312 S National Retail Development Partner(Open Location)This dynamic, respected and well capitalized private developer, with offices nationwide, has opened a new equity partner position. Your role will be very diversified. Call on national retailers to negotiate development agreements. Assist and lead existing development teams on major retail and mixed use projects. Work with executive team to open new retail development offices nationally, and help strengthen current offices. Double production and profits in the next few years. This partner role can operate from any present office within the company. It is like running your own business, with someone else’s capital. Interested? Excellent. Contact Sayres Dudley at asdudley@dudleyandassoc.comMEETINGSRealShare TICJune 3, 2008 Hyatt Regency, Irvine, CA For more information please visit http://www.almevents.com/conf_page.cfm?instance_id=28&web_id=1135&pid=746&kw=rsca TREC Today - A Focus on Public Affairs June 18, 2008 Three Lincoln Center, Dallas, TX For more information please visit http://www.recouncil.com/txdalcnl/events2.nsf/Events/Featured/4A7DDAE40DE2AC7187256E2B00701E32?Open&LayoutID= ArticleThe State Of The MarketIt has been a few months since the last Marketplace Reflections, and some have been asking us if we had stopped sending them out. No, but both of us have been very busy dealing with the current market, attending a number of meetings and conferences, and speaking with influential members of the commercial real estate industry to gauge the current state of the market. Everyone understands that the huge momentum our industry was enjoying through the second quarter of 2007 has curtailed. Most companies, including our clients, have adjusted their payrolls the past 6-9 months, and have prepared to ride the storm out until the real estate economy improves. Reasonable people strongly disagree how long this trend in the market will last, but the consensus seems to indicate an upswing will occur between the first and third quarters of 2009. We all hope it does not last that long. In spite of the “cloudy” conditions, there are still some rays of sunshine we have discovered in our meetings, depending on your location, company focus, cash reserves, and short/long term strategies. If we may “scatter shoot” a bit, here are a few excerpts from different settings. At Real Share Washington DC, leaders seemed to feel that the general fundamentals of the region were still good, and the economy reasonably vibrant. Regardless of the direction the election takes, the panelists felt the overall area will be fine. It may shift a bit from defense spending, requiring office and flex space in Northern VA to medical and research space in MD, but the fundamentals and demand for commercial space should be OK. Real Estate 2008 in Los Angeles posed a different mood. Coming off the strongest real estate economy in America, Southern California has been hit fairly hard by the downturn, but it is all relative. Industrial space in LA and the Inland Empire has gone from 3% vacancy to 5%. West LA Class A office can still attract rents at $4.50 PSF + monthly, where entertainment and business service tenants tend to stay. Orange County Class A office has clearly been affected by the sub prime melt down, as many of those companies had space in the area, and a large amount of new space has just delivered. Multi family owners though are benefiting from a demand on space, and land is changing hands from condo developers to apartment developers. Most agreed that sellers were still holding out for higher prices, but patient investors will start to find deals soon. The overall So. Cal market is still generally strong, and as John Cushman stated, “Don’t panic.” IRETO Global Summit 2008 brought together a great group of international investors and lenders to discuss the status of real estate around the world. Much of the focus was on activity in the GCC states, with investment in the multiple billions USD. Dubai, Abu Dhabi, Saudi Arabia, Oman, and Bahrain lead the region in growth. Equity coming from that region into the US markets generated some of the largest headlines this past year, in office, hotels, entertainment, and mixed-use. India, in spite of infrastructure issues, and governmental red tape, has a very fast growing economy and is attractive to US investors with long term plans. China leads the Far Eastern markets, and most of the panelists who are active in that country shared their investments are going well. The Chinese and Hong Kong economies are expected to remain robust, even post Olympics. Malaysia and Singapore remain vibrant, and Vietnam is also getting much more attention. Brazil is receiving some scrutiny from investors, and the Latin American coastal countries have increased developments in hotels and high end residential communities. Finally, GREEN has gone mainstream. According to panelists at all the meetings, and numerous articles written in national pubs, Corporate America is demanding green design in all new projects, including both office and industrial. Municipalities like San Francisco and Los Angeles have adopted GREEN building ordinances, and dozens of other cities are considering their own. Dallas is seeing a significant swing toward sustainable development, as we heard at the latest NTCAR meeting. Pension funds and venture capital funds are aggressively seeking LEED certification on new projects, and GREEN Funds are being raised. The cost differential of developing GREEN buildings is also shrinking, and according to a recent global survey, 77% of companies are willing to pay a premium in their occupancy cost to be in energy efficient LEED buildings. It appears this concept has become a movement, and that is a good thing for all citizens of this planet if we are to preserve this great creation we all call home. Have a great week! Sayres & Kathy Dudley Dudley & Associates 80 S. Lake Ave. #702 Pasadena, CA 91101 Phone (626) 564-0800 Fax (626) 564-0802 www.dudleyandassoc.com Copyright © Dudley & Associates 2008 All Rights Reserved
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