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EXECUTIVE WATCH GlobeSt.com:
BY ANTHONY J. LOPINTO
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| EXECUTIVE WATCH
is a weekly column featured on GlobeSt.com, the leading online real estate
news site. Tony LoPinto, the CEO of Equinox Partners has been the
author of this widely read column.
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Bottom of the Bathtub or Down the Drain
By Anthony J. LoPinto
October 28, 2008
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Until 6 weeks ago, there was anxious anticipation that we would soon "hit the bottom of the bathtub," bump along for a while, and eventually bounce back and be on the road to recovery in '09, albeit slowly. Well, the past 6 weeks has produced a profound change, and the mood has shifted from somber to seriously concerned that a recovery is "years" away. The carnage on Wall Street continues to pound the REIT sector, with stock prices at levels that defy any rational explanation other than a market out of control. The by-product is that organizations that have been holding the line and avoiding significant staff reductions, are now putting a knife to the organization. As an example, last week First Industrial made a big move and cut its CEO along with a large percentage of its investment and regional organization. I have heard on a number of fronts that, over the next month or two, more cutbacks among principal organizations will occur, slicing between 10% to 20% of their staff. Notwithstanding the gloomy view within the eye of this storm, I believe that we are at the bottom of the bathtub, and sometime soon after the election, markets will begin to settle down and we'll begin to have a more positive view of '09. Wishful thinking? I hope not.
© 2008 - GlobeSt.com, all rights reserved.
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