The document discusses trends in commercial real estate leading into the 2000s. It notes that while oversupply issues plagued markets in the past, more flexible capital markets now encourage real estate development. Syndicated property ownership and real estate investment trusts (REITs) emerged as vehicles for public investment in real estate. The boom of the 1980s and 1990s saw high demand and low vacancy rates, but overbuilding occurred. The document predicts that in the 2000s, new development will only occur where justified by actual demand, and opportunities will exist for redeveloping existing devalued properties and financing acquisitions of such properties. Returning to fundamentals of real estate economics and lending will be keys to the future of real estate banking.

1. LEOLIST VANCOUVER: THE FUTURE OF COMMERCIAL REAL ESTATE

2. ALTHOUGH MAJOR SUPPLY-DEMAND INEQUALITIES HAVE ACTUALLY
REMAINED TO PESTER PROPERTY MARKETS RIGHT INTO THE 2000S IN
NUMEROUS LOCATIONS, THE FLEXIBILITY OF RESOURCES IN PRESENT
ADVANCED MONETARY MARKETS IS ENCOURAGING TO PROPERTY
PROGRAMMERS. THE LOSS OF TAX-SHELTER MARKETS DRAINED A
CONSIDERABLE AMOUNT OF RESOURCES FROM REAL ESTATE AND
ALSO, IN THE SHORT RUN, HAD A DEVASTATING IMPACT ON SECTORS
OF THE SECTOR. HOWEVER, A LOT OF EXPERTS AGREE THAT MUCH OF
THOSE DRIVEN FROM REAL ESTATE ADVANCEMENT AND THE
PROPERTY FINANCE SERVICE WERE UNPREPARED AND ALSO
IMPROPER AS CAPITALISTS. IN THE LONG RUN, A RETURN TO REAL
ESTATE DEVELOPMENT THAT IS BASED IN THE FUNDAMENTALS OF
BUSINESS ECONOMICS, GENUINE DEMAND, AND REAL REVENUES WILL
PROFIT THE MARKET.

3. SYNDICATED OWNERSHIP OF PROPERTY WAS INTRODUCED IN THE
EARLY 2000S. SINCE LOTS OF EARLY CAPITALISTS WERE INJURED BY
COLLAPSED MARKETS OR BY TAX-LAW ADJUSTMENTS, THE IDEA OF
SUBMISSION IS PRESENTLY BEING APPLIED TO MORE ECONOMICALLY
SOUND CASH FLOW-RETURN REAL ESTATE. THIS RETURN TO SEEM
ECONOMIC METHODS WILL CERTAINLY HELP MAKE SURE THE
CONTINUED GROWTH OF SYNDICATION. REALTY INVESTMENT TRUSTS
(REITS), WHICH EXPERIENCED GREATLY IN THE PROPERTY ECONOMIC
CRISIS OF THE MID-1980S, HAVE RECENTLY RE-EMERGED AS AN
EFFECTIVE AUTOMOBILE FOR PUBLIC POSSESSION OF PROPERTY.
REITS CAN OWN AND ALSO OPERATE REALTY SUCCESSFULLY AND
INCREASE EQUITY FOR ITS PURCHASE. THE SHARES ARE MUCH MORE
EASILY TRADED THAN ARE SHARES OF OTHER SUBMISSION
PARTNERSHIPS. THEREFORE, THE REIT IS MOST LIKELY TO OFFER AN
EXCELLENT VEHICLE TO SATISFY THE PUBLIC'S WISH TO POSSESS
REAL ESTATE.

4. A LAST REVIEW OF THE ELEMENTS THAT RESULTED IN THE ISSUES OF
THE 2000S IS VITAL TO COMPREHENDING THE CHANCES THAT WILL
ARISE IN THE 2000S. REALTY CYCLES ARE ESSENTIAL FORCES IN THE
SECTOR. THE OVERSUPPLY THAT EXISTS IN MANY PRODUCT TYPES
OFTEN TENDS TO CONSTRAIN ADVANCEMENT OF NEW ITEMS, YET IT
CREATES POSSIBILITIES FOR THE BUSINESS BANKER.

5. THE DECADE OF THE 2000S EXPERIENCED A BOOM CYCLE IN REALTY.
THE ALL-NATURAL CIRCULATION OF THE REAL ESTATE CYCLE WHERE
DEMAND EXCEEDED SUPPLY DOMINATED THROUGHOUT THE 1980S
AND EARLY 2000S. AT THAT TIME OFFICE VACANCY PRICES IN MANY
SIGNIFICANT MARKETS WERE LISTED BELOW 5 PERCENT.
CONFRONTED WITH GENUINE NEED FOR OFFICE SPACE AS WELL AS
VARIOUS OTHER TYPES OF REVENUE HOME, THE DEVELOPMENT
COMMUNITY ALL AT ONCE EXPERIENCED A SURGE OF READILY
AVAILABLE RESOURCES.

6. THROUGHOUT THE VERY EARLY YEARS OF THE REAGAN
ADMINISTRATION, DEREGULATION OF BANKS RAISED THE SUPPLY
AVAILABILITY OF FUNDS, AS WELL AS SECOND HANDS ADDED THEIR
FUNDS TO A CURRENTLY GROWING CADRE OF LOAN PROVIDERS. AT
THE VERY SAME TIME, THE ECONOMIC RECUPERATION AS WELL AS
TAX OBLIGATION ACT OF 1981 (ERTA) PROVIDED INVESTORS
INCREASED TAX "WRITE-OFF" VIA ACCELERATED DEVALUATION,
DECREASED FUNDING GAINS TAX OBLIGATIONS TO 20 PERCENT, AND
ENABLED OTHERINCOME TO BE PROTECTED WITH REAL ESTATE
"LOSSES." IN SHORT, MUCH MORE EQUITY AS WELL AS FINANCIAL DEBT
FUNDING WAS OFFERED FOR REAL ESTATE INVESTMENT THAN IN THE
PAST.

7. 1986 AND ALSO THE SUCCEEDING LOSS OF SOME EQUITY FUNDS
GENUINE ESTATE, TWO VARIABLES PRESERVED REAL ESTATE
DEVELOPMENT. THE PATTERN IN THE 2000S WAS TOWARDS THE
GROWTH OF THE SIGNIFICANT, OR "PRIZE," REAL ESTATE TASKS.
OFFICE COMPLEX IN EXCESS OF ONE MILLION SQUARE FEET AND
HOTELS SETTING YOU BACK NUMEROUS MILLIONS OF DOLLARS
ENDED UP BEING POPULAR. CONCEIVED AND ALSO BEGUN PRIOR TO
THE PASSAGE OF TAX OBLIGATION REFORM, THESE SIGNIFICANT
PROJECTS WERE COMPLETED IN THE LATE 1990S. THE 2ND FACTOR
WAS THE ONGOING SCHEDULE OF FUNDING FOR CONSTRUCTION AS
WELL AS DEVELOPMENT. DESPITE THE DEBACLE IN TEXAS, LENDERS
IN NEW ENGLAND CONTINUED TO FUND NEW JOBS. AFTER THE
COLLAPSE IN NEW ENGLAND AND ALSO THE CONTINUED DESCENDING
SPIRAL IN TEXAS, LENDING INSTITUTIONS IN THE MID-ATLANTIC AREA
CONTINUED TO OFFER FOR BRAND-NEW BUILDING. AFTER
REGULATION PERMITTED OUT-OF-STATE FINANCIAL DEBT
CONSOLIDATIONS, THE MERGERS AND ALSO PROCUREMENTS OF
COMMERCIAL BANKS PRODUCED PRESSURE IN TARGETED AREAS.

8. THESE DEVELOPMENT RISES ADDED TO THE CONTINUATION OF
LARGE-SCALE BUSINESS MORTGAGE LOAN PROVIDERS
[HTTP://WWW.CEMLENDING.COM] GOING BEYOND THE MOMENT WHEN
AN EXAMINATION OF THE REAL ESTATE CYCLE WOULD CERTAINLY
HAVE SUGGESTED A STAGNATION. THE CAPITAL SURGE OF THE 2000S
GENUINE ESTATE IS A RESOURCES IMPLOSION FOR THE 2000S. THE
THRIFT MARKET NO LONGER HAS FUNDS READILY AVAILABLE FOR
BUSINESS REALTY. THE SIGNIFICANT LIFE INSURANCE BUSINESS
LENDERS ARE FIGHTING WITH MOUNTING PROPERTY. IN RELATED
LOSSES, WHILE THE MAJORITY OF BUSINESS BANKS TRY TO REDUCE
THEIR REALTY DIRECT EXPOSURE AFTER 2 YEARS OF STRUCTURE
LOSS RESERVES AND ALSO TAKING WRITE-DOWNS AND ALSO
CHARGE-OFFS. THEREFORE THE EXCESSIVE ALLOWANCE OF
FINANCIAL DEBT READILY AVAILABLE IN THE 2000S IS NOT LIKELY TO
CREATE OVERSUPPLY IN THE 2000S.

9. NO NEW TAX REGULATIONS THAT WILL IMPACT REAL ESTATE
INVESTMENT IS FORECASTED, AND, ESSENTIALLY, FOREIGN
INVESTORS HAVE THEIR VERY OWN PROBLEMS OR POSSIBILITIES
BEYOND THE USA. CONSEQUENTLY TOO MUCH EQUITY FUNDING IS
NOT EXPECTED TO SUSTAIN RECOVERY REAL ESTATE EXCEEDINGLY.
RECALLING AT THE PROPERTY CYCLE WAVE, IT SEEMS RISK-FREE TO
SUGGEST THAT THE SUPPLY OF BRAND-NEW GROWTH WILL
CERTAINLY NOT OCCUR IN THE 2000S UNLESS NECESSITATED BY
ACTUAL DEMAND. ALREADY IN SOME MARKETS THE NEED FOR
APARTMENT OR CONDOS HAS GONE BEYOND SUPPLY AND ALSO
BRAND-NEW CONSTRUCTION HAS ACTUALLY STARTED AT A
REASONABLE SPEED.

10. OPPORTUNITIES FOR EXISTING REALTY THAT HAS ACTUALLY BEEN
CONTACTED CURRENT WORTH DE-CAPITALIZED TO GENERATE
PRESENT APPROPRIATE RETURN WILL CERTAINLY GAIN FROM
INCREASED DEMAND AS WELL AS RESTRICTED BRAND-NEW SUPPLY.
NEW GROWTH THAT IS WARRANTED BY QUANTIFIABLE, EXISTING
PRODUCT DEMAND CAN BE FINANCED WITH AN AFFORDABLE EQUITY
CONTRIBUTION BY THE CUSTOMER. THE LACK OF RUINOUS
COMPETITORS FROM LENDERS ALSO ANXIOUS TO MATERIALIZE
ESTATE CAR LOANS WILL CERTAINLY ENABLE SENSIBLE FUNDING
STRUCTURING. FINANCING THE PURCHASE OF DE-CAPITALIZED
EXISTING REALTY FOR NEW OWNERS CAN BE AN EXCEPTIONAL
SOURCE OF PROPERTY FINANCES FOR BUSINESS BANKS.

11. AS PROPERTY IS SUPPORTED BY A BALANCE OF DEMAND AND ALSO
SUPPLY, THE RATE AND ALSO STRENGTH OF THE HEALING WILL
CERTAINLY BE DETERMINED BY FINANCIAL VARIABLES AND ALSO
THEIR EFFECT ON DEMAND IN THE 2000S. FINANCIAL INSTITUTIONS
WITH THE ABILITY AS WELL AS DETERMINATION TO TACKLE BRAND-
NEW REALTY LOANS NEED TO EXPERIENCE SOME OF THE SAFEST AS
WELL AS MOST PRODUCTIVE LENDING CARRIED OUT IN THE LAST
QUARTER CENTURY. REMEMBERING THE LESSONS OF THE PAST AS
WELL AS RETURNING TO THE FUNDAMENTALS OF GOOD REAL ESTATE
AND GREAT PROPERTY BORROWING WILL CERTAINLY BE THE KEY TO
PROPERTY BANKING IN THE FUTURE.