“During this first quarter of 2008, a massive real estate resetting and deleveraging is occurring. Some say it is due directly to sub-prime and single family housing troubles. This is not entirely true. The commercial and residential markets are not linked but for three items: 1) space demand is linked by the health of the economy; 2) lending is linked through the capital markets; and, 3) bond pricing is linked through the investor base (supporting the capital markets). Otherwise, no other links exist. “

“Bad news abounds from recent capital markets conferences in January and February that confirms for the time being, capital in enormous quantities has virtually evaporated for commercial real estate debt. This is an unfortunate wake up call as our industry needs to recognize that times have finally changed. “

“The industry old timers are constantly asked if our current industry woes are reminiscent of 1998 or even 2001. Our view is that this is more reminiscent of the early 1980’s, the late 80’s, and the early 90’s.”