Real Estate Executive Report 2009 - Still Standing
Mondaq Business Briefing › United Kingdom Law Articles in English (2009)
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Real Estate Executive Report 2009 - Still Standing
FOREWORD Welcome To The Third Deloitte Real Estate Executive Report On 16 September 2009 we marked the one year anniversary of the collapse of Lehman Brothers and the incredible impact this event had on the world economies. Despite the stock market rally in the last six months and consensus expectation of a return to weak economic growth in 2010, we do not believe there is any cause for complacency when looking at the prospects for the real estate industry. In a world where we have received a serious lesson in how hard it is to make accurate predictions, we can only say one thing with absolute certainty – that the future for real estate will be significantly different to the past.
In this third edition of the Real Estate Executive Report, we have asked our industry specialists to consider those key elements of our industry which appear to have been altered for good by the changes in the UK and world economies. Richard Hyman is one of the UK's leading experts on retailing, having analysed, commentated and advised on the sector for 30 years, and is now an adviser to our Consumer Business practice. We sat down with him to talk about the ways in which the retail industry has been altered by the global recession and what this means for retailers' relationships with their landlords. Richard shares insights on consumer demand, retail space requirements and the competitive forces currently in play, which he believes will impact retailers in fundamental ways, possibly permanently. A key factor in determining the future of the industry will be the availability of debt finance and the attitude of the key debt providers towards real estate. Our Debt Advisory team discusses the significant issues currently dominating the debt markets, looking at underwater bank loans, regulatory requirements, the impact of new accounting rules, new debt providers entering the market and the changes wrought by Government intervention. There may bargains to be had in the UK property market at present, but investors seeking UK property exposure by traditional means could find those routes blocked. We expect that an innovative approach will be needed from traditional property investors, fund managers and, of course, the nationalised banks, in order to drive increased activity. Widening the focus to the industry as a whole, we have asked our Real Estate Solutions team to comment on their expectations for the shape of any potential recovery for the real estate industry. Will it be one of the much vaunted V, W or U shaped recoveries, or most likely none of the above? There is a clear challenge facing all real est...See the full content of this document
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