SAN DIEGO—The US economy is sailing and should continue to do so, but the historically prolonged CRE boom strongly signals a cyclical downturn ahead, according to most panelists and speakers at the recent Trigild Lender Conference here.
A number of hot button issues dominated the conference, including historically low interest rates, homeownership shifts, global volatility, the oil-market slump and a growing political divide to name a few—but despite the headwinds, one thing remained clear: the US commercial real estate market and overall economy remain relatively healthy, at least in the short term.
Hundreds of real estate, legal and finance industry leaders joined Peter Muoio, Ph. D., EVP and chief economist at Ten-X, an online real estate platform, and other keynote speakers—Sam Chandan, Ph.D., a noted economist and president of Chandan Economics; Robert Guest, foreign editor of The Economist; and Donald Sheets, managing partner of AlumCreek Holdings—to examine the state of commercial real estate and overall economic trends at the annual conference, presented by Trigild, a San Diego-based real estate services company.
According to Trigild president Judy Hoffman, with a special focus on non-performing loans, the conference was aimed at lenders, special servicers, legal counsel, investors and loan buyers, offering an ideal forum to help participants prepare for the next wave of distress. In addition to the keynote presentations, the many topics covered included strategies for recovery, managing environmental challenges, bank regulation and risk retention and unique issues for both balance-sheet lenders and special servicers.
“Despite constraints, the U.S. economy is sailing, and we expect the expansion to continue,” said Muoio. “Employment is healthy, wage growth continues to pick up, household wealth continues to improve and the housing market continues its recovery.” >> Read more>