Real estate recovery ongoing
New York City -- The real estate recovery is well under way, though not without some bumps, workout specialist Dennis P. Yeskey recently told a gathering of more 100 real estate professionals at the "Industry Spotlight: Finance -- Global Trends in the 2011 Real Estate Capital Markets" discussion sponsored by NYCREW, the New York area chapter of the Commercial Real Estate Women network.
Capital is returning to the market and with few foreclosures, workouts will increase, said Yeskey, managing director of New York City-based global consulting firm AlixPartners LLP, at the evening event held at the offices of law firm Crowell & Moring LLP.
"The last two years have been unbelievably strange," Yeskey began, adding that this most recent recession was the fifth downturn he’d witnessed, and "a crisis that was a non-crisis. Unlike the other four, we [in real estate] weren’t the root cause of the problem."
Money is returning to the market faster than in previous recoveries, though it could take four years for employment figures to bounce back to pre-recession levels.
"Every recovery since World War II has taken longer to recover lost jobs," Yeskey noted. "It’s a normal function of a mature recovery."
New York will remain a major focus for the new wave of foreign investors, who perceive it as more affordable than other major cities around the world.
"I’ve never seen foreign interest in the United States greater," Yeskey said.
Apartments and hotels are seen as good investments, and infill retail remains positive, Yeskey said to the enthusiastic audience. The speech was his sixth annual industry preview for NYCREW.
The session was NYCREW's first event of 2011 and kicks off a yearlong celebration of its 10th anniversary.