AFT attendees feel that we are not out of the woods on the national economy, and don't have confidence in our government's ability to help the matter, but I certainly got the sense that owners and developers have a confident mindset. "Access to capital is challenging, cap rates remain low and more product is on the market now, but we could have big positions in office, industrial or retail right now and be far worse off."
"NOI is slowing but still growing in many markets, GSEs (Fannie and Freddie) are supporting the market's capital needs in a big way, foreign and institutional money has not been frightened off and even 'well-documented' horror stories by the mainstream media, like Phoenix, still have strong fundamentals and growth upside for savvy long term investors."
Make no mistake, not all was cheerful and rosy. Pressing issues like the lack of tax credit investment, job growth and the bulge of multifamily CMBS refinancing needing attention in the next few years were touched on as significant challenges that can create an even more hostile environment for business.
Obviously the folks who attend industry conferences and share best practices with peers are doing the necessary homework to be successful...so maybe I should expect this type of positive inspiration here. Nevertheless it was exciting to watch this very open and engaging dialogue take place. More tomorrow...
