Letter from the Editor

CRE Finance World, Summer 2012

Editor’s Page Letter from the Editor Paul Fiorilla Co-Managing Editor I of copies of CMA, and to my horror I realized that I barely U.S. Apartment Sector’s Recovery Hasn’t Trickled Down to Multi-We have some sector-specific pieces, such as an article aboutthe hot multifamily sector. Are apartment property valuations outof line? Terri Rubin of Berkadia Commercial Mortgage has somethoughts on page 41, and S&P’s Larry Kay discusses why “Then the summer of 1996, some months after being madeanother victim of the consolidation in the newspaper industry,I was hired to write for Commercial Mortgage Alert. A fewweeks before I was scheduled to start, I was given a packet understood a single sentence of the content. That would be a family CMBS” on page 23. rather large problem when it came time to write. Another area of controversy involves the ongoing fallout from the My fears turned out to be unfounded, or at least I hope so. CMA credit crisis, which involves the disposition of a large amount of bad editor Tom Ferris gave me a crash course on bond finance and I debt. Midland Loan Service’s Stacey Berger talks about “The New soaked up loads of information from the many good people who World Order for Special Servicers” on page 15, while Ed Shugrue were literally making up the fledgling industry as they went along. of Talmage Securities goes over some “Hot Topics” on page 64, I mention all this as a way of saying — as I embark on a stint as Nomura Securities’ Lea Overby compares the performance CMBS co-managing editor of the CRE Finance World — that I am humbled special servicers on page 32 and Sam Plimpton of the Baupost and honored to be in this position, and I hope that in some small Group has a definitive opinion about the price of loans being sold way I can contribute to the success of this important industry. on the secondary market on page 26. Even though the topic of my second career wasn’t exactly planned, And that’s not even close to all. John Scheurer, who never held it I am grateful that it turned out to be so interesting, even if sometimes against me for labeling him as a member of the B-piece “cartel” in a Chinese-proverb way. There is rarely a dull moment in real many years ago, has some suggestions to improve the future of estate, and today’s market is no exception. We are no longer in the the industry on page 19. From Trepp, Tom Fink provides us with full-blown crisis-management market of 2007 to 2009, but one — what else? — a data update on page 38. Plus, we have updates marked by a series of fits and starts that creates a large amount from some of the CRE Finance Council’s Forums and more. of ongoing uncertainty. Before I stop I want to thank all of the people who worked so One element of uncertainty surrounds real estate fundamentals. hard to put this issue together. Our goal is to continually make the We have several articles that discuss the direction of fundamentals magazine more readable, more forward-looking and more relevant. and their potential impact on pricing and rent trends. For example, So please enjoy and don’t hesitate to provide feedback. see “Risks to Recovery in Commercial Real Estate,” on page 10, authored by a Reis team led by Victor Calanog, “CRE Fundamentals: Pricing and the Implications for Improved Credit Quality,” on page 50, by PPR’s Suzanne Mulvee and Steve Miller, and a piece on the Paul Fiorilla outlook based on a survey of real estate economists by the Urban Co-Managing Editor Land Institute’s Stephen Blank on page 62. CRE Finance World A publication of Summer issue 2012 sponsored by CRE Finance World Summer 2012 3


CRE Finance World, Summer 2012
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