NAI Global Leadership Review of U.S. Economic Picture Offers Opportunities, George Livingston says

ORLANDO, FL --- A review of U.S. economic and commercial real estate trends unveiled at the recent NAI Global Leadership conference in New York offers a few positive signs, according to real estate analyst George Livingston, (top right photo) chairman of NAI Realvest.

“Industrial facilities, medical offices and rental apartment properties rank as the positive sectors for the immediate future,” Livingston said. “Beyond those, the most positive news is that once the economy begins its recovery late next year, opportunities will abound for those who prepare now, Livingston said.

High energy prices will continue to drive construction and delivery costs higher, and site preferences will reflect the impact of cost on logistics, Livingston said.

Hotels and airlines are likely to suffer reduced demand. On the plus side, high fuel and transport prices will likely drive jobs and manufacturing back to the U.S. from overseas, Livingston said.

“Values will continue to decline in the short run, and astute developers are now acquiring assets to exploit when the recovery begins,” he said.

Investment transactions are down. “Sellers are not accepting reduced offers, and buyers are having a hard time financing acquisitions,” Livingston said. “Credit will remain tight for the foreseeable future, and our weak dollar is expanding exports, increasing the cost of imports, and may increase inflation,” he said.

Livingston said other economic signs include:

• a flat economy isn’t expected to begin its recovery until late 2009;

• a political shift to the left foreshadows less business-friendly government;
• demand for real estate services is down substantially;
• “green” development and redevelopment is an industry-wide phenomenon that is likely to remain a primary focus;
• housing will remain weak over the short to intermediate term;
• commercial real estate brokerage companies are rapidly consolidating---Jones Lang LaSalle recently acquired Staubach Company, for example.

Livingston said successful commercial real estate firms are seeking innovative ways to accommodate market trends, including social networking and exploitation of international markets.

For more information contact:
George Livingston, Chairman, NAI Realvest 407-875-9989

Larry Vershel, President Larry Vershel Communications, 407-644-414

About NAI Realvest
NAI Realvest, with offices in Orlando, Daytona Beach and Clermont is a fully integrated commercial real estate operating company specializing in brokerage, development, investment, leasing and management, consulting and research services in the U.S. and worldwide. NAI Global is an international commercial real estate network with over 325 offices spanning the globe.

Since 1978, clients have built businesses on the power of NAI Global’s expanding network. Extensive services include multi-site acquisitions and dispositions, sublease, tenant representation, lease administration and audit, investment services, due diligence and related consulting and advisory services. To learn more, visit www.NAIrealvest.com.