Sam Zell on Today's CRE Environment

[Jordan T.]

As possibly the most successful real estate investor around today, Sam Zell is a great source to listen to.  I found some notes from his latest conference presentation, and the link is below.  Here are a few parts:

• Sam thinks the future is in high rise versus low rise, changing the company and upgrading his portfolio. Suburbs sold, focus is on 7 core markets.  
• Baseball adage – in the 8th inning on commercial real estate.
• Once you get to the 9th inning – value dramatically dictated by quality of assets. High quality assets with minor alterations but the marginal items in historical pricing is where you will see an impact in value.
• The disparity between A and B class properties will increase.
  
• Enormous amounts of liquidity and financing at attractive rates = lots of competition which is destructive.
  

Sam Zell Comments at Invest for Kids Chicago Conference