NEW YORK CITY-There is certainly cause for concern, from a potential double-dip recession to sovereign debt issues in Europe; global volatility may be hitting home soon to Manhattan. But an overriding sense of confidence dominated Wednesday's RealShare New York conference at the Marriott Marquis Hotel. Panelists taking part in the event's “Power Panel” noted that owners, managers and other commercial real estate leaders must evolve to meet tenant’s changing space demands given the shaky economy. The event, which was sponsored by ALM's Real Estate Media Group, which publishes GlobeSt.com and Real Estate Forum, drew in excess of 300 people.

“It really is a double-edged sword,” said Philip J. McAndrews, managing director at TIAA-CREF, explaining that one of his biggest concerns is space demand. “Because, we like any other industry, sell a product. On the demand side of that product, it is significantly impacted by the economy. It is caused by lack of job growth, capital constraints. One of the things we saw happen this year was a robust transactional marketplace that basically, as we moved in August, when the US credit had its downgrade, we saw the brakes start to be applied now. That created some confusion in the marketplace.”

But despite the lagging effect in the commercial real estate market, McAndrews said that industry leaders must change their outlook and the way transactions are modeled, which he said will affect rental rates, absorption and other market factors. Just recently, TIAA-CREF and developer CBL & Associates Properties Inc. have closed on a $1.09 billion joint venture in four shopping malls in the Southeast, including West County Center in St. Louis; CoolSprings Galleria in Nashville; the Oak Park Mall in Kansas City, KS; and the Pearland Town Center Pearland, TX.