David Jellison Chairman of the Board, Liberty Property Trust, Eden Prairie, MN
Daniel DeMarco Chairman-Elect, Campanelli Companies, Braintree, MA
Anne Evans Estabrook Immediate Past Chair, Elberon Development Company, Cranford, NJ
Stephen Crosby Vice Chair, Government Affairs, CSX Real Property, Inc., Jacksonville, FL
Steven Pumper Vice Chair, Education, Transwestern Commercial Services, Dallas, TX
Joseph Taylor Vice Chair, Membership & Chapter Relations, Matrix Development Group, Cranbury, NJ
Susan H.S. Graham Secretary & Chair, Information & Research Committee, The Estate of James Campbell And Its Affiliates, Kapolei, HI
Robert Cutlip Treasurer, Progress Energy, Inc., Raleigh, NC
Michael Newman Chair, Business Development Committee, Greater Southwest Development Group, Las Vegas, NV
Gerald O. Yahr Chair, Industry Trends Task Force, The Koll Company, Newport Beach, CA
Michael Pittana Chair, National Forums, Crown Realty Partners, Toronto, ON
Thomas J. Bisacquino President, NAIOP, Herndon, VA
Only the most unrepentant optimist would declare that he sees light at the end of the
tunnel at this point in the economic cycle. What is apparent in the distance, however, is a
glimmering that could become bright light in the not-too-distant future.
At least three things are generating this glimpse of light:
Layoffs are bottoming out. As I travel around to our Chapters, I hear that the tremendous
layoffs are nearing an end. Further, states are beginning to collect more income taxes, which
means more people are starting back to work. High employment after all is the lifeblood of our
industry.
Interest rates are low. The current low interest rates should spur the economy and growth
in the months ahead.
Companies may soon need to spend money. Companies that downsized and cut costs to the bone
are returning to profitability. With inventories also low and business picking up, they will
soon need to spend money to continue growing.
The biggest challenge facing all landlords is renewals over the next 12 months. Currently,
they may be using only 75 percent of the space they leased. For instance, if they occupy 1,500
square feet but need only 1,100 or 1,200 square feet at the moment, do you simply chunk off 300
square feet and let it sit there, or do you relocate the tenants? Once you seek to relocate
tenants, they are then more open to relocating in another building.
There is great uncertainty out in the marketplace right now and we must be sensitive to it.
It is like the buildings we construct. We dig down into the earth until we hit firm ground or
bedrock, then we begin the foundation. Tenants do not want to begin building on quicksand and
for too long the economy has been like quicksand.
Beyond these challenges, there are many positive signs and by the second half of 2003, our
industry should be experiencing growth once again.
David Jellison 2002 NAIOP Chairman of the Board Vice President and City Manager, Liberty Property Trust
