Decade Answers: Rick Pretsfelder

Rick Pretsfelder is a managing partner at Leslie J. Garfield Co., New York, N.Y. What are your predictions for commercial real estate in the new decade? My commercial real estate predictions for the new decade: The next decade will be one where fortunes will be made. Many existing property owners and their creditors will see their loans mature and re-capitalizing this debt will be very difficult, given declining property values and high vacancy rates. These problems will exacerbated by a shortage of capital to modernize structures and attract new tenants. Ultimately these buildings will need to be recapitalized. Some of the reckoning will be delayed by roll over loans, but in the end, buyers who have deep pockets will snap up those assets forced into liquidation at reasonable prices. If and when the economy rebounds these buyers will then reap the benefits of rising rents and increasing property values.