...But Outlook Remains Hopeful for Most Properties.(Brief Article)

As the economic slowdown progresses this year, it is inevitable that real estate will start to feel the pain, according to Tony Pierson.

However, real estate still looks good on a relative basis, having outperformed the S&P 500 and the bond markets in recent years, he noted.

Mr. Pierson, managing director, TimesSquare Real Estate Investors, Hartford, Conn., added, speaking at the second general session of the MBA's commercial real estate finance convention, that the commercial real estate sector's attractive income yields offer protection even in a downturn.

While today's environment is "somewhat similar" to what it was 10 years ago, there are some exceptions today, Mr. Pierson said.

For instance, there is no "secular overbuilding" today, even though there is some "cyclical overbuilding."

And the capital markets are a lot more responsive today than they were 10 years ago, so that the market adjustment is swifter in the current cycle.

On the ...