The 28th Annual Cornell University Real Estate Conference is set to take place on campus in Ithaca, NY, on September 23 and 24. The final speaker list and schedule is now available at http://tinyurl.com/3xpy5o4. Please visit the following link to register for the conference — http://tinyurl.com/2wn2fee.
REAL ESTATE REALITY
Defining the New Normal
Recovery–where are we now and where are we headed?
Economists continue to make analogies to letters of the alphabet when analyzing and discussing prospects for the economy. While we no longer hear many references to a “V” shaped recovery, we continue to hear about prospects for a “U”, “W” and even an “L” shaped slope to near-term economic performance. Our first session on Friday morning will offer timely perspective on whether the Great Recession is behind us and how the recent past, current conditions and the longer term trends are influencing the magnitude and nature of demand housing and commercial structures. This discussion will set the stage for understanding where we are in moving toward a “new normal” for commercial real estate.
Discerning patterns from real estate sectors.
Regardless of where we are in what we all hope is an economic recovery, some segments of the commercial real estate industry are more active than others. Going forward, we all want to know how the various sectors are likely to perform and which will present greater opportunities for sustained returns. This session will focus on recent market activity with a focus on retail, office, industrial, multifamily and hospitality properties. Our panelists will share their view on what sector-by-sector activity tells us about opportunities for generating positive investment returns as the new normal continues to evolve.
Green printing buildings.
Whatever the new normal turns out to be, it is clear that regulators and customers are driving an increasing focus on energy efficiency and overall environmental responsibility. As the source of more than a third of all carbon dioxide emissions in North America, buildings will be a big target for mandatory reductions emissions—which will be put in place sooner or later. We will hear from those involved in moving green approaches to designing, retrofitting and operating buildings from theory to practice. They will share where we are and where we are headed in measuring building and project performance as well as overcoming cultural barriers to progress in the realm of sustainability.
Strategies for opportunistic investing.
When we gathered last year, many of us thought we would see significant opportunities to acquire distressed assets in late 2009 and into 2010. As it turned out, few opportunities have emerged and substantial equity capital sits on the sidelines waiting to be deployed, raising the question of what happens next. Do investors begin to lose their discipline and lower underwriting standards to try and put more dollars to work? Will existing mortgage refinancing deadlines be enforced or will lenders be able and inclined to extend loans for existing owners? One thing is for sure–everyone wants insight on strategies for making investments that will generate positive returns in the current and evolving environment. In this session, those who are doing deals today will share where they are putting their dollars and how they are making money—whether it be with private equity or in joint ventures with government agencies, such as the Federal Deposit Insurance Corporation.
A MESSAGE from the CONFERENCE PLANNING CHAIR
J. Allen Smith, Chief Executive Office, Prudential Real Estate Investors
Just two years removed from the worst of the financial crisis, real estate markets have shown remarkable resilience. With surprising speed, buyers have returned to the market and prices have rebounded from their cyclical lows. Lenders are again competing aggressively for loans, and market fundamentals are stabilizing for most property types.
But, despite these encouraging signs, significant risks and uncertainties remain. Among these, on a macro level, are concerns about sovereign debt, a lackluster recovery of the US economy, and a potential slowdown in China.
Newly enacted financial reforms, while perhaps being clear in intent, require extensive definition before the “rules of the game” under the new regulatory regime are fully understood. This highlights the fact that while government intervention may have been necessary to stem the tide of the financial crisis, the risk of policy mistakes cannot be ignored.
More specifically for real estate, although it can be said that the capital markets are healing, they are certainly not functioning at what most would think of as normal capacity. Transaction activity remains low and somewhat bifurcated between what one market observer described as “trophy or trauma.” Defining the new normal for the market involves understanding the interplay of these and other forces, something that is perhaps more complex today than ever.
With that in mind, we have assembled a distinguished group of speakers who will share their outlook for the market and how they approach the challenging task of finding value.
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HOTEL RESERVATION INFORMATION
A block of rooms is being held at the Statler Hotel, Cornell University
-Please call the hotel directly to make your reservations
-Remember to mention that you are with the Cornell Real Estate Conference to receive the special group rate that is available until August 23, 2010.
-Overnight parking available to hotel guests for $12/day
-Group rate: $180, Single occupancy/day, $190, Double occupancy/day
Statler Hotel, Cornell University
130 Statler Drive
Ithaca, NY 14853
Phone (607) 257-2500 or 800-541-2501
Hotel Cancellation Policy
Reservations must be cancelled by 3PM one day before the arrival date to avoid a cancellation fee equal to one night’s room charge.
FOR MORE CONFERENCE INFORMATION
Bryan Vliet, Program Coordinator
Cornell Real Estate Council
114 W. Sibley Hall, Cornell University
Ithaca, NY 14853
Phone 607-255-8962 Fax 607-255-0242