NEW YORK CITY-Topping this year’s list of business risks faced by the real estate industry is the continued uncertainty and impact of the credit crunch, which the industry may feel more acutely than any other. The fallow period resulting from that uncertainty is an opportunity for companies to prepare for the next wave of growth. So says Ernst & Young in its annual business risk report for the industry, released earlier this week.

“There will be a fundamental shift back to traditional real estate underwriting principles, including comprehensive cash flow analysis and prudent levels of debt and equity in consummating real estatetransactions,” says Howard Roth, global and Americas real estate leader at E&Y, in a release. “This ‘back to basics’ movement will lead to the greater transparency necessary to restore confidence between buyers and sellers.”

The E&Y report, which was produced in conjunction with strategy consultancy Oxford Analytica, notes that the credit crunch is entirely new to the list of business risks as identified from interviews with leadership of multinational real estate companies. Perhaps reflecting the topsy-turvy state of the market and global economy, the top 10 list is itself much changed from last year’s.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.