§ Unemployment is steady at 9.5 percent, but true underemployment may be as high as 17 percent.
§ There is a lot of uncertainty in the marketplace; people are holding off if they can, hoping for better times. We don’t expect the second half of 2010 to be any better than the first half of the year.
§ We don’t expect to see much job recovery before 2018 and aren’t sure what industries will drive it. Best hopes are health care, education, bio-medical and sustainable-related services and industries. You can’t have a recovery without job growth.
§ Business spending for inventory is up slightly over last year.
§ Property values are down 25 percent to 40 percent from last year and they are continuing to slide.
§ Construction spending is off 25 percent to 30 percent from last year.
§ Vacancy rates are at 17 percent and we expect them to go to 20 percent or higher.
§ A little more credit is available, but it’s tough to get. Some banks are extending rather than foreclosing. Some investors are buying banks to get their distressed properties. Some banks are foreclosing to get properties.
§ Short-term lease renewals are the trend for smaller companies one to three years old.
§ Longer term leases are starting to come back for larger companies 10 to 15 years old
§ 70 percent to 80 percent of all energy used in the country is used by commercial buildings.
§ Capital gains tax rate is 15 percent, but the government would like to move it to 25 percent.
§ Regulatory agencies in a search for income are getting more aggressive; examples include safety, water runoff and lead paint regulations. Expect this to continue.
§ Upper management is primarily baby boomers. It is getting tougher to attract young professionals to jobs in real estate. The Y generation wants high-tech, sustainable workplaces doing what they see as meaningful work.
§ Everybody is into green and sustainable; you’d be foolish to not consider it in everything you do today.
§ Customers want small, less expensive, more efficient space.
§ We need to start thinking about future use and design of buildings — new and renovated — for mixed use in urban areas along transit routes. Live, work and play close to or at home.
§ It’s critical to think long-term and have a positive attitude.
Check back tomorrow for a conclusion from