Schwanke did hint that CRE could emerge stronger than before the fall. By sidelining development, existing buildings will have time to fill and create demand for new space when the recovery comes.

CRE firms will be rightsizing, if they haven't already started. "For many in 2009, the best-case scenario means feeling good about staying employed," Schwanke said. "Acquisitions and dealmakers get mothballed in favor of asset managers, leasing pros and workout specialists. Not only will these jobs be less sexy than investment banking, but they also pay less."

On the investment side of the equation, Schwanke said multifamily assets, particularly moderate-income units, will remain the favored bricks and mortar. In other words, buy or hold. Likewise, he concluded that it's a buy or hold for industrial. Office and hotel properties are hold strategies. He also said there are buying opportunities in residential building lots just like distressed condos. Other niches are student housing, seniors housing, tax-credit apartments and medical office. As for retail, he had just one word--"pray."

The ULI meeting was held at the Omni Mandalay Hotel in Las Colinas' urban center, close to development sites of Atlanta-based Gables Residential Trust and Icon Real Estate Partners of Dallas and also right at the heart of corporate America's favorite office addresses in Dallas/Fort Worth. Icon, like other developers, will hold the land but delay the start until times are better, according to founder Paris Rutherford, one of three panelists at the ULI event.

Forget the quick fix, advised Schwanke, ULI's keynote speaker. It will be late 2010 or early 2011 before conditions improve. And, he said it definitely will be at least 2011 before the recovery bell rings.