Sunday, June 28, 2009

Round Table: Institutional Lenders, Capital Partners Have Upper Hand in Commercial Real Estate Development and Investment

ORLANDO, FL--- Institutional investors and capital partners will play an increasingly dominant role in commercial real estate development projects, according to participants in the U.S. Real Estate Opportunity and Private Fund Investing Forum held recently in New York City.

George Livingston, (top right photo) chairman emeritus of NAI Realvest in Maitland, attended the exclusive gathering of lenders, investors and developers sponsored by the Information Management Network.

“Capital partners will control much of the decision-making in commercial real estate projects,” Livingston said. “Capital is hard to come by for large-scale projects, and most industry insiders expect that capital partners will have an increasingly powerful say in even minor decisions,” he said.

Developers – operating partners with the expertise to make big projects happen on time and on budget – will have to settle for a smaller slice of the pie in the end, Livingston added.

“Investors are demanding less risk, lower developer fees, and a bigger share of the profits,” Livingston said.
“They are more likely to back developers who invest substantially in their projects, have a sound track record and are willing to make a long-term commitment to the project,” Livingston added.

Livingston said that’s good news and bad news for commercial development.

“We can expect to see less commercial development and less innovation,” Livingston said. “Capital partners will tend to favor proven strategies in primary markets that will generate immediate cash flow and – to the extent it is possible to project – sure rewards,” Livingston said.


George Livingston, Chairman Emeritus, NAI Realvest, 407-875-9989;

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142;

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