Boston Properties Chairman Mort Zuckerman and Equity Group Investments Chairman Sam Zell told a group of real estate professionals that the worst of the credit crisis is over. "There will be a recovery, and we will do much better than anywhere in the world," Zuckerman said. The two men spoke at NAREIT's REITWeek conference.
The commercial real estate market's increasing weakness could lead to a growing tide of defaults on commercial-mortgage-related investments held by major banks. According to Standard & Poor's, Citigroup, Barclays and
Merrill Lynch, which was acquired by Bank of America, each hold about $20 billion in CRE investments.
A majority of private and institutional real estate investors will increase their commercial real estate holdings in 2009, according to the Marcus & Millichap Real Estate Investment Services survey. The survey of 1,129 private and institutional real estate investors shows that many believe that there are bargains to be found in commercial real estate investments.
President-elect Barack Obama said he will not tell Congress what to do but rather will seek to work collaboratively with Congress on an economic-stimulus plan. "We're going to have a collaborative, consultative process with Congress over the next few days," Obama said. "We're not trying to jam anything down people's throats."