I painfully site the dreaded '80s, especially in my native Dallas. Instead, companies will have to bring pre-leasing to the table to secure financing at a reasonable price. In other words, money won't be handed out by banks like lollipops at the drive-up teller window. In addition, some investors have about had it with Wall Street's Big Adventure this year. The end result is better management of existing portfolios.
Real estate continues to be a good hedge for institutional investors.
We anticipate that they will see real estate as a sustained business that is maturing. Here's where it gets really interesting. Since the acquisition market will not be hot, REITs and other property owners will have to develop their revenue streams and strengthen their bottom lines through traditional management strategies. KPMG takes it even further than that. REITs basically will become utilities.