This quote was just too funny. Anyone who gets out at all is liable to get a laugh from this statement by Sam Zell, the billionaire CRE pumping man: [Thanks L!]
Real estate is all about supply and demand. We haven’t built anything in this country since July ‘07. We’re not building anything right now.
“If there is no new supply, then the catastrophe that everybody was expecting isn’t going to happen,” Zell, 69, said in a telephone interview. “Commercial real estate is not suffering and is in fact getting better,” said Zell, the founder of Equity Office Properties Trust, the biggest U.S. office owner before Blackstone LP bought it in a record-breaking leveraged buyout in 2007.
I’ve seen plenty of commercial real estate go up since 2007 and see “For Lease” signs all over. I can’t be everywhere though, so I’ve looked for solid evidence and numbers to back up Zell’s claims, but I’m not seeing it. The MSM presents CRE like this:
A prolonged slide in U.S. commercial rents appears to have stopped, and rates are poised to firm if economic and leasing activity both continue their unfolding, if slow, revival, according to commercial real estate agents.
Wow- there’s a stance to build optimism. Zell never admitted the slide, so it’s hard to buy his case for improvement. Also note that Zell’s comment is saying basically what he said last summer. Zell can keep pumping, but I’m not buying it.