- November 2010: Vol. 22 No. 10

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What’s “New”: Questions still outnumber answers

by Larry Gray

There’s lots of talk about the “new normal,” regarding the economy, the financial markets and even the real estate market. Some say a higher level of unemployment and slower economic growth will be “normal.” More volatility and less confidence in the public equity markets will be “normal.” The expanded role of government and increasing regulation in the U.S. financial markets will be “normal.”

It seems this “new normal” may not bode well for commercial real estate owners and investors as the demand for real estate remains tepid and property performance suffers.

“The ‘new normal’ has a new set of rules,” notes Bill Gross, CEO of PIMCO. “What once pumped asset prices and favored the production of paper, as opposed to things, is now in retrograde. Leverage and deregulation are fading from the horizon and their polar opposites are in the ascendant. Some char

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