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.
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.
Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142 firstname.lastname@example.org;