Image via WikipediaThree thousand points.
That was the difference between the “troubled” economy under discussion on the day that the Maddux Business Report conducted this year’s Real Estate Roundtable, and the day it was edited, a few weeks later, when the markets were in utter freefall.
We can only hope that, in the future, when you read this, that the world—and the Tampa Bay market in particular—is in a prolonged recovery.
Joining us for our annual, no-holds-barred luncheon were:
• Susie L. Rice, RMC Property Group
• N.J. Olivieri, President, Horizon Mortgage
• Larry D. Richey, Senior Managing Director Central & North Florida, Cushman & Wakefield
• Kyle S. Burd, Principal, Regional Vice President, Eola Capital
• Paul D. Engelhardt, Vice President, Hallmark Developers
• Lisa L. Parks, AICP, Hauger-Bunch, Inc.
MADDUX BUSINESS REPORT: The capital markets are in absolute chaos. What impact is it having on development and leasing activity in the Tampa Bay area?
SUSIE L. RICE: From the retail perspective it’s had a huge impact. If you were to even consider a new development at this point in time, the banks require you to have pre-leasing and a high loan-to-value ratio. It’s extremely difficult at this time. We’re finding the refinancing different, and we’ve had longer term ten-year loans that are out there that are coming due, and we’re able to get them refinanced, mostly with life companies.
MADDUX: Part of the issue is that a lot of retailers are dropping by the wayside.
MADDUX: So you’ve got kind of a double-whammy there.
RICE: We’re not really active right now. We’re planning for the next two to three years; as far as development goes, we’re scouting out some sites. We primarily develop neighborhood strip centers that are grocery-anchored, so it’s really based on need. Our industry got way ahead of its curve. The housing market has completely destroyed a lot of the opportunity for us to develop over the next 12 to 24 months, unless you’re in a market that you’re repositioning a property.
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Copyright 2008 Bob Andelman. Click here for copyright permissions!
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Copyright 2008 Will Eisner: A Spirited Life by Bob Andelman