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2 jacksonville.bizjournals.com ■ the business journal first coast rEaL EstatE Economic oUtLooK confErEncE MarCh 26-aPril 1, 2010

2010 Event Chair

Dan Corritore Coldwell Banker

Commercial Benchmark(904) 403-5722

Stephanie WintersThe Business Journal

(904) 265-2211

Stephanie WintersJennifer TrentSight & Sound Productions(904) 645-7880 x-121

Jennifer TrentKimberly WaterhouseW.G. Mills

(904) 742-8889

Kimberly Waterhouse

Susy TurneyFlorida Commercial Real

Estate Services(904) 470-0010

Susy TurneyDavid C. Stubbs, CCIMJacksonville Port Authority

(904) 357-3082

David C. Stubbs, CCIMSteve Smith, CCIMSeber Associates, Inc.

(386) 965-4068

Steve Smith, CCIMDavid Sillick The Business Journal

(904) 265-2203

David SillickWalter L. Reed, CCIMCommercial Florida

Realty, Inc.(904) 396-0222

Walter L. Reed, CCIM

Celeta McClammaNortheast Florida

Association of Realtors(904) 394-9494

Celeta McClammaSandra C Kahle, CCIMKeller Williams

First Coast Realty(904) 838-6446

Sandra C Kahle, CCIMGerri Jones, CCIMJones Investment

Properties(904) 757-2593

Gerri Jones, CCIMNorman W. Gregory, CCIM

CCIN Real Estate Services, Inc.

(904) 699-3848

Norman W. GregoryPete GentryFlorida Commercial Real

Estate Services(904) 470-0010

Pete Gentry

Philip ElsonAerostar Environmental

Services, Inc.(904) 565-2820

Philip ElsonGlenn EastNortheast Florida

Association of Realtors(904) 394-9494

Glenn EastCathy ChambersJacksonville Regional

Chamber of Commerce(904) 366-6667

Cathy ChambersLindsey BallasJacksonville Economic

Development Commission

(904) 630-2940

Lindsey Ballas

We’d like to thank our Hosts of the 2010 Outlook Conference. Without your support this Conference would not be possible.SPEaKER SPoNSoR:

• Aerostar Environmental Services, Inc.

• Coldwell Banker Commercial Benchmark

• Commercial Florida Realty• Eola Capital

• Florida Mitigation Providers, LLC• First Atlantic Bank• Golder Associates Inc• HDR Engineering Inc • Jacksonville Economic

Development Commission

• MacTec• Mantanzas Geosciences/LG2• RealtyWEB.NET• United Country Certified

Real Estate• Urban Land Institute

HoSTS:

14th Annual First Coast Real Estate Economic Outlook

CommittEE

Please refer to the following pages for the Conference Agenda and Floor Plan. On behalf of the committee, we thank you for attending and hope you enjoy the conference. Please make sure to visit with our hosts in the exhibition hall. Their support helps make this conference a success.

Thank you!

Gary Montour, Ed. D.Colliers Dickinson(904) 358-1206

Gary Montour, Ed. D.

andre J. van RensburgCCIM, ALC, CIPS,

Prudential Commercial(904) 672-4355

andre J. van Rensburg

John T. Winkler, CCIMWinkler Real Estate

Services(904) 229-7425

MARCH 26-APRIL 1, 2010 first coast rEaL EstatE Economic oUtLooK confErEncE jacksonville.bizjournals.com ■ tHe busIness jouRnAL 3

The last two years have been a rollercoaster for most commercial real estate practitioners. It is true that our industry is still impacted by increasing unemployment and the lack of funding for commercial real estate transactions. The banking fraternity’s complete risk adverse attitude towards commercial real estate funding, hampers even the bona fide financially feasible acquisitions. As our industry is fueled by employment, we know that the commercial market should remain flat for at least the next year. However, many commercial practitioners are optimistic about what the future holds. Most have seen the activity in the last months starting pick up and have found that the market is starting to respond to the opportunities that this economic climate presents. The American entrepreneurial spirit and expertise in the commercial real estate

industry will sustain the well educated and professional commercial real estate practitioner. Those of us that are in the industry now, are here to stay. We have found that the current climate has presented us with opportunities in fields we never dared to explore. Knowledge remains power and the true professional continues to improve through education and experience. I urge the commercial real estate practitioner who has not explored the CCIM

education to now make most of the time that is available and take the step to set yourself apart from the rest of the pack. Not only will this improve your knowledge and skills but it will also make you part of the most successful networking group in commercial real estate.

Andre J. van Rensburg North Florida District President Florida CCIM Chapter

The Commercial Alliance of Realtors (CAR) is proud to be part of this 14th Annual 2010 First Coast Real Estate Economic Outlook Conference. CAR represents the commercial real estate division of the Northeast Florida Association of Realtors (NEFAR) and is also a member of the National Association of Realtors.Members enjoy the benefits of continuing education, tremendous backup support and

a powerful lobbying ally with both the National Association of Realtors and the Florida Association of Realtors. CAR members meet monthly with an emphasis on learning

and opportunities for networking with fellow commercial brokers.

Pete Gentry and Susy TurneyCommercial Alliance of Realtors Co-Chairs

Welcome to the 14th Annual Real Estate Outlook Conference presented by the North District of Florida CCIM (Certified Commercial Investment Member) and the Commercial Alliance of Realtors (CAR) with help from our presenting sponsors The Jacksonville Business Journal, and Sight and Sound Productions. In response to your suggestions in last year’s questionnaire we have further diversified the slate of topics presented. Our keynote speaker, Brian Smith from Regency Centers, will speak on the topic of “Navigating the Way forward” Dr. Sean Snaith, from the University of Central Florida; will provide a Florida viewpoint of the economy.New for this year, we have Thomas J Hand from ULI, discussing trends in urban

infill. Bruce Douek of JEA, Ebenezar Gujarlapudi from the City of Jacksonville, and Greg Letnaunchyn of Liberty Property Trust will provide timely information about “Sustainability and Energy Efficiency”. Michael White of First Atlantic Bank, Todd Barfield, Business Capital Solutions Group, James Groh of Holland and Knight, Bert Simon of Gartner, Brock and Simon, Mark Williams of Crenshaw Williams Appraisal, and Myers Jackson of United Country Auction Co. will present a large panel discussion of “ Distressed Commercial Assets”. We will, of course, have the market segment break-out sessions, Industrial, Office, Retail, Single Family, Multi- Family, and Cornerstone.One of the most informative and useful portions of the Outlook Conference takes

place in the Exhibition Area, it is here you will find the many products and services that are offered by our sponsors. This year’s conference would not be possible without the generous support of these sponsors. Please take the time to stop by and allow the sponsors to introduce themselves and their products and services. And help me to thank them for their continued support. I would personally like to thank all of the committee members, who have worked

tirelessly since last year and once again brought the show together during difficult times. It has made my job easier with the great efforts made by the volunteers. Lastly, let me thank you, the attendees, who take time from your

busy schedule to participate in the Outlook Conference, the premier commercial real estate event in the First Coast. Thanks for coming, have an informative and enjoyment event.Dan Corritore, 2010 Event Chair

Welcome messages

apart from the rest of the pack. Not only will this improve your knowledge and skills but it will also make you part of the most successful networking group in commercial real estate.

Andre J. van RensburgNorth Florida District President Florida CCIM Chapter

I would personally like to thank all of the committee members, who have worked tirelessly since last year and once again brought the show together during difficult times. It has made my job easier with the great efforts made by the volunteers. Lastly, let me thank you, the attendees, who take time from your

busy schedule to participate in the Outlook Conference, the premier commercial real estate event in the First Coast. Thanks for coming, have an informative and enjoyment event.Dan Corritore

and opportunities for networking with fellow commercial brokers.

Pete Gentryand Commercial Alliance of Realtors Co-Chairs


general session

6:30 – 7:30 a.m. Registration / Networking Breakfast / Host Exposition

7:30 – 7:35 a.m. Welcome / Pledge / Prayer

7:34 – 7:40 a.m. Introductions: Head Table, Guest, Moderators and Panelist / Appreciation to Sponsors

7:40 – 7:50 a.m. Vote NO on 4! (Amendment 4)

7:55 – 8:00 a.m. CAR Introduction

8:00 - 8:20 a.m. Introduction and Mayor John Peyton Remarks

8:20 - 8:30 a.m. Introduce and Speaker Sponsor Remarks

8:30 – 9:10 a.m. “Recession & Recovery: A Look Into our Economic Future” Sean Snaith, PH.D., Economist – University of Central Florida. Sponsored by:

9:10 - 9:15 a.m. CCIM Introduction

9:15 – 10:10 a.m. “Surviving the Storm” Brian Smith, President and Chief Operating Officer, Regency Centers

10:10 - 10:20 a.m. Transition to breakouts

10:20 - 11:05 a.m. Breakout Sessions (5) No. I

11:05 – 11:20 a.m. Transition to Breakouts

11:20 – 12:05 a.m. Breakout Sessions (4) No. II

FirsT BreaKoUT sessions

DistresseD CommerCial assets: solutions anD strategies, Room 102Moderator: gary montourSenior Vice President Colliers Dickinson

Panel: eric Clemons, Heritage Bank, todd Barfield, Business Capital Solutions Group, James groh, esq.,Holland and Knight, Bert C. simon, esq., Gartner, Brock and Simon, mark Williams, Crenshaw and Williams Appraisal, myers Jackson, United Country Auction Co.

inDustrial market, Room 104Moderator: nathan k. rogersVice President CB Richard Ellis

urBan infill / DoWntoWn, Room 105Speaker: Daniel Douglas Moderator: ron BartonDirector of Urban Planning & Design Executive Director KlingStubbins Architects JEDC

First Coast Commercial Real Estate Outlook Conference & Expo

2010 Program

102

104 105 106 107

Grand Lobby

Ballroom

Exhibitation Hall A

Exhibitation Hall B

Room

Breakout Session Rooms

Exhibit Area

General Session

single family market, Room 106 Moderator: ron stephanChief Executive Officer Northeast Florida Multiple Listing Service

offiCe market, Room 107Moderator: Chuck DiebelColliers Manager Colliers Dickinson

Panel: karl Hanson, Flagler Dev. Co., mike Heise, Liberty Property Trust,John Haley, Cornerstone Reg. Dev. Partnership, Peter Crolius, Graham & Co.

seConD BreaKoUT sessions

Cornerstone’s eConomiC DeveloPment uPDate, Room 102Moderator: Jerry mallotPresident Cornerstone Reg. Dev. Partnership

retail market, Room 104

Moderators: geneva Henderson John o'Conner Ex. Vice President Former TV News AnchorLat Purser & Assoc., Inc.

Panel: John Crossman, Crossman & Co., steve tart, The Ben Carter Co.,Patrick mckinley, Regency Centers, Clint murphy, Murphy Land

sustainaBility anD energy effiCienCy: opportunity for Commercial real estate, Room 105

Moderator: Philip elsonVice President Aerostar Environmental Services

Panel: Bruce Douek, JEA, ebenezar gujarlapudi, City of Jacksonville , greg letnaunchyn, Liberty Property Trust

multi-family market, Room 106Moderator: taylor WilliamsSenior Vice President Grandbridge Real Estate Capital, LLC Panel: shawn mcDonald, Freddie Mac, steve lear, Walchle Lear Multifamily Advisors

Floor plan

marCH 23, 2010

MARCH 26-APRIL 1, 2010 FIRST COAST REAL ESTATE ECONOMIC OUTLOOK CONFERENCE jacksonville.bizjournals.com ■ THE BUSINESS JOURNAL 5

The economy may be in recov-ery, but it’s not time to cel-ebrate just yet.

“Most economists would agree the U.S. came out of the recession in the third quarter of last year, but the reason there isn’t such an uplift of spirits is the labor mar-ket, which I refer to as the scar that is left over from this trauma,” said Sean Snaith, director of the Institute for Economic Competi-tiveness at the University of Cen-tral Florida.

Snaith will discuss the reces-sion and the challenges the na-tion faces during the recovery at the upcoming Commercial Real Estate Outlook Conference. Part of his speech will explore how the collapse of the housing and real estate markets, combined with the credit market crunch, caused extremely significant job losses across the country and in Florida in particular.

Since companies don’t start re-hiring as soon as a recession ends, the labor market will continue to be weak, and Snaith believes there could be additional job losses through the first part of the year.

“The labor market scar is an issue in Florida; unemployment will be in the double digits in 2012

and payroll will not get back to pre-recession levels until 2014,” he said.

Snaith said Florida is missing two key components that helped drive the state out of previous re-cessions; population growth and the impact that had on the resi-dential real estate market, and all the associated jobs that growth brought, from construction work-ers to mortgage underwriters.

While he doesn’t know what in-dustry will take the housing mar-ket’s place, Snaith said now is the time to plan for the future. “It’s going to take leadership at the state level to make the investment [needed] to fill in the gaps that were covered by the population growth-related economic growth, whether this is a targeted indus-try, such as clean tech, or other technology such as biotech,” Snaith said. “That comes down to education, training and invest-ment in people. There is an over-obsession with tax breaks as a way to achieve this. I think that is important, but it is just one of the ingredients in the recovery. That is the conundrum when you have budget deficits and an aversion to raising taxes to pay for education and training. But in some ways,

we’re undermining the future by not taking seriously that invest-ment in education.”

Snaith said a double-dip reces-sion is unlikely despite a predict-ed wave of commercial real estate loan failures, thanks to stimulus spending that is still in the pipe-line. However, things could still get ugly.

“The real question for the finan-cial side is ‘How are banks going to deal with this situation?’ ” he said. “When valuations drop 40 to 50 percent, is there going to be a wave of foreclosures on the com-mercial side akin to the residen-tial side? I don’t know. But some-thing has to give.”

— Dolly Penland

Snaith calls labor market ‘recession’s scar’RECESSION & RECOVERY: A LOOK INTO OUR ECONOMIC FUTURE■

Sean SnaithDirector, Institute for Economic CompetitvenessUniversity of Central Florida

8:30 a.m.Ballroom

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6 jacksonville.bizjournals.com ■ THE BUSINESS JOURNAL FIRST COAST REAL ESTATE ECONOMIC OUTLOOK CONFERENCE MARCH 26-APRIL 1, 2010

Outlook Conference veteran Nathan Rogers will conduct a multifaceted session looking

both backward and forward at the in-dustrial real estate conditions in the area including how the area stacks up with other Southeastern industri-al markets in occupancy and rents.

Rogers, a first vice president at CB Richard Ellis, will present a re-cap of 2009 including basic market statistics.

As part of the recap, he will dis-cuss some of the larger transac-tions of 2009 including, but not limited to: Mercedes-Benz leasing

400,000 square feet at Majestic In-ternational Tradeport; Georgia-Pacific leasing 546,000 square feet at Westlake Industrial Park and Hillwood Properties selling 601,000 square feet at Tradecenter.

Rogers also will offer insight into the current state of the port and what is expected of it this year. He also will take an in-depth look at this year in warehousing.

“Going forward, certainly we don’t expect to see any new specula-tive construction in 2010,’’ he said. “I think there are some opportunities, especially in build-to-suit activities, because not every warehouse need will fit in existing boxes.”

In addition, Rogers said, the area probably will see a decline in large warehouse vacancy because of a lack of new construction.

On the upside, he sees glimmers of hope toward the end of the year and will discuss how it will affect indus-trial demand for warehouse space.

“We will see a decrease from the

lofty growth of the third and fourth quarters of 2009,” he said. “I think that late third quarter or early fourth quarter we should see some slow steady growth.

“As long as the GDP continues to inch forward, people have to restock inventories at that point. The amount of space that’s been absorbed not only here in Jacksonville, but across the country, has been so minimal the past couple of years there certainly has to be some pent-up demand in there.”

— Jim Nasella

As president and chief op-erating officer of Regency Centers Corp., owner of 400

grocery store-anchored commu-nity shopping centers in 29 states, Brian Smith acknowledges he’s the only Regency chief executive to report a quarterly loss, ever. That happened last year during the height of the recession.

Yet, through it all, Regency Cen-ters never stopped looking ahead, planting the seeds that will posi-tion the company for future growth once the economy turns around. Smith will elaborate on this strat-egy and offer a list of 10 lessons his company learned in 2009 in the morning keynote address at the 14th Annual First Coast Real Estate Economic Outlook Confer-ence and Expo March 23.

As bad as things got for Regency Centers in 2009 — capital dried

up, loans could not be refinanced, tenants went out of business and rents were reduced — things could have been much worse.

“Fortunately, very fortunately, we were not staring at a large block of maturing loans in our portfolio, as 80 percent of our properties are unencumbered by any mortgage debt,” Smith said.

The company immediately went to work making painful decisions that would strengthen its balance sheet. Among other things, Regen-cy laid off 30 percent of its work force, mostly in development and construction, a division of the company that had all but gone into hibernation because of the reces-sion. It also sold some properties, even reducing its shareholder divi-dend. And it reorganized its chain of command. “The managing di-rectors of our three super regions

now have total profit and loss re-sponsibility,” Smith said. “They run businesses, not deals.”

With an already strong balance sheet now even stronger, Regency made several calculated, value-added expenditures. It increased its stake in what Smith described as “one of the finest real estate port-folios in the country” from 25 per-cent to 40 percent. It bought more shopping centers at discounted prices and it started construction on two new development projects that Smith called “no-brainers.”

These days, the company re-mains focused on leasing its ex-isting space, a goal Smith admits is easier said than done in the current economic climate. It’s also still on the lookout for more investment opportunities, while at the same time trying to sell low-performing properties, even land

that no longer seems like a good development risk.

Smith said Regency Centers be-lieves it now has all the key ele-ments in place to succeed in both good and bad times, especially if it remembers the lessons learned in 2009. Among those lessons: stick with what you know. “For us that means no lifestyle or mixed-use projects,” Smith said.

— Marisa Carbone Finotti

Smith: 10 lessons Regency learned in 2009

When people face the possibility of dealing with a distressed property, they should always turn to somebody they trust, said

Gary Montour, senior vice president of the Jack-sonville commercial real estate firm Colliers Dick-inson.

“The first thing to do is call somebody if you feel there is a problem, so you can quickly come to a solution,” Montour said. “Those of us in the busi-ness are in the business of solving problems like this.”

Solutions to a distressed property could include anything from finding another tenant to putting the property up for auction to see if anyone will buy it at a discounted rate, Montour said. All of the possibilities will be discussed at the First Coast Re-al Estate Economic Outlook Conference March 23.

But no matter what solution someone decides on, Montour said the key is to start talking about the situation as soon as symptoms start to occur.

“People often wait too long and don’t ask ques-tions when they are having trouble with cash flow,” he said. “Sometimes there are no solutions. Some people are going to have to walk away, but it’s all about working with the real estate they have.”

With the struggling economy, distressed proper-ties and the inability of people to pay their mort-gages has become a major problem. But the issue cannot be ignored, which is why the timing of the distressed commercial assets panel at the Outlook Conference couldn’t be more perfect, Montour said.

Facing a distressed property problem isn’t a death sentence, he said, but the issue does need to be discussed.

“We need to confront this issue with all these properties in limbo,” Montour said. “Even if they are taking it at a loss, they have to get back in the economy.”

— Lauren Darm

SURVIVING THE STORM■

Brian SmithPresident and chief operating officerRegency Centers Corp.

9:20 a.m.Ballroom

DISTRESSED COMMERCIAL ASSETS: SOLUTIONS AND STRATEGIES■

MODERATOR: Gary MontourSenior vice presidentColliers Dickinson

10:20 a.m.Room 102

PANEL:

Michael White, First Atlantic BankTodd Barfield, Business Capital Solutions GroupBert C. Simon, Gartner, Brock and SimonMark Williams, Crenshaw and Williams AppraisalMyers Jackson, United Country Auction Co.

INDUSTRIAL MARKET■

Nathan K. RogersVice presidentCB Richard Ellis

10:20 a.m.Room 104


During the First Coast Real Estate Economic Outlook Conference, Ron Stephan,

the executive director of Northeast Florida Multiple Listing Service, will be happy to announce the bad news is behind us in the single-fam-ily real estate market.

“The trend is up both in sales and dollar value,” Stephan said. “The prices of houses are starting to come back up again.”

The single-family market break-out session of the conference March 23 will focus on the current state of the residential market and compare it with previous years. According to

Stephan, all signs are pointing in a positive direction.

“A lot of the national numbers have gone up, and mortgage rates are still low,” he said. “A lot of peo-ple are still trying to take advantage of that, and lenders are speeding up the process on investments and closeout prices.”

Compared with 2009 alone, North-east Florida MLS is already seeing signs of positive market trends. In January and February, 792 and 817 units were sold, respectively, com-pared with the 627 and 802 units from the previous year, Stephan said.

In addition, inventory numbers are starting to decrease. In January and February 2009, Northeast Flor-ida MLS inventory lasted between 17 and 22 months, but the time span has consistently stayed at 15 months so far for 2010.

“Inventory is down, and sales are up,” Stephan said. “That’s a good sign. Once spring comes, I think things will continue to go in an up-ward trend.”

According to Stephan, the num-bers in January and February weren’t as good as December of last year, but he said the weather does affect real estate. He’s hopeful that

once warmer weather and more jobs come back to Jacksonville, the real estate market will continue to soar for the Northeast Florida economy.

— Lauren Darm

A look at where urban areas — including Jacksonville — are headed will be the

main discussion at The Urban Land Institute session led by Jacksonville Economic Develop-ment Commission Executive Di-rector Ron Barton and Dan Doug-las, director of urban planning and design at KlingStubbins in Raleigh, N.C.

Douglas will discuss downtown Raleigh’s success story, outlin-ing the processes, projects and policies that built the present momentum and the latest pro-posals designed to propel down-town Raleigh into the future. Barton will apply some of those same trends as he sees them fit-

ting in Jacksonville. “Downtown Raleigh has ben-

efitted from committed leader-ship, sustained investment and an engaged citizenry,” Douglas said. “While new investment has slowed, Raleigh continues to grow. We are already planning for the economy to recover and the next wave of development.”

In the past seven years, Ra-leigh has attracted more than $3 billion in new investment to its downtown core, including a new main street, 3,000 additional residents, two new museums and a signature high-tech public pla-za at its heart. Douglas will talk about what Raleigh did and how the city did it.

Barton then will take those thoughts and interpret them relative to where he sees Jack-sonville as the recession winds down.

“I’m going to talk about the ingredients for success post re-cession,” Barton said, “I’ll talk about how the world changed be-cause of the recession and what I think are some of the charac-teristics we’ll have to respond to coming out of this recession that are different than the world before the recession. What are going to be some of the common elements that are part of our vi-sion and what are some of the new elements?”

— Jim Nasella

SINGLE-FAMILY MARKET■

Ron StephanExecutive directorNortheast Florida Multiple Listing Service

10:20 a.m.Room 106

URBAN INFILL/DOWNTOWN■

Ron BartonExecutive directorJacksonville Economic Development Commission

Dan DouglasDirector of urban planning and design KlingStubbins

10:20 a.m.Room 105

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Armed with plenty of statistics and cold, hard facts, panelists at the office market breakout

session of the First Coast Real Estate Economic Outlook Conference will be taking an honest look at activity in the region and discussing how it is affecting the economy as a whole.

“Everybody has been suffering,” said Chuck Diebel, manager of Col-liers Dickinson, who is scheduled to moderate the panel. “Historically, the greater percentage of activity in the office market has been related to sales. Last year, 70 percent of the market was related to leasing. We are all having to adapt to everything that goes along with these differences.”

Panel members include Karl Han-sen, vice president of Flagler Devel-opment, Mike Heise, vice president and city manager for Liberty Prop-erty Trust and Peter Crolius, manag-ing broker for the Jacksonville office of Graham and Co.

Hansen, Heise and Crolius will discuss inventory, occupancy, ten-ant particulars, financing and green development, as well as current dif-ficulties such as the relationship be-tween owner expenses and leasing rates. Also planned is a discussion of Amendment 4, or Hometown De-mocracy, which would require voter referendums for changes to Jackson-ville’s comprehensive plan, and its potential effects on the office market.

John Haley, senior vice presi-

dent of business development for the Cornerstone division of the Jacksonville Regional Chamber of Commerce, will also appear on the panel to discuss the Downtown of-fice market and its importance to economic viability.

“A lot of an area’s reputation, in terms of economic development, comes from the character of its Downtown,” said Haley, who will share facts such as labor availability and commuter patterns. “We are see-ing some office space starting to fill again. People are hopeful, and we’re optimistic that the hope will turn into reality.”

— Laura Jane Pittman

officE marKEt■

Moderator:

Chuck diebelColliers managerColliers Dickinson

10:20 a.m.room 107

Panel:

Karl Hanson, Flagler Development Co.Mike Heise, liberty Property trustJohn Haley, Cornerstone regional Development PartnershipPeter Crolius, Graham & Co.


Even though good news about capital and financing is something not often heard

in the real estate market with the struggling economy these days, apartments are starting to present a whole new perspective.

“There isn’t a lot of capital for homes right now, but there is a lot of capital for apartments,” said Taylor Williams, the senior vice president of Jacksonville’s branch of Grand-bridge Real Estate Capital LLC, a commercial real estate finance firm based in Charlotte, N.C.

According to Williams, there are a lot

of financing opportunities available for the owners of apartment complex-es right now, which will be discussed during the multifamily market panel at the First Coast Real Estate Econom-ic Outlook Conference March 23.

The problem is that only apart-ment complexes with 85 percent oc-cupancy rates or higher are eligible for the loans.

“Renters are in a really good place right now,” Williams said. “A lot of apartments have depressed rates and high vacancies, but that’s not good for the owners.”

Jacksonville’s apartment market is

below the national average and consid-ered one of worst apartment markets in the country, Williams said. North-east Florida falls on the scale toward the bottom along with the rest of Flor-ida and cities such as Atlanta, while San Francisco and Seattle rest safely at the top.

According to Williams, the job mar-kets are fairing well in the higher cities on the national scale, which means the only way Jacksonville would be able to move up the ladder is if more jobs come back to the area.

“There was a lot of overbuilding in the apartment market, and that cost

a lot of people to lose their jobs,” he said. “If jobs come back to [Northeast Florida], the market would come back up, too.”

— Lauren Darm

Not repeating mistakes from the past will be one of the main topics discussed at the

retail market panel at the First Coast Real Estate Economic Outlook Con-ference. Moderated by former CBS Action News anchor John O’Connor, the panel will consist of regional leaders in the industry who will take an in-depth look at ways to overcome issues that have plagued the retail market such as inexperienced devel-opers, overbuilding and over-lever-aged loans.

“We have a dynamite panel that will speak not only to the future of re-

tail here in Jacksonville but regional development as well,” said Geneva Henderson, executive vice president of Lat Purser & Associates, who or-ganized the panel. “There have been many projects in the past several years that did not make sense. We will take an open, honest look at why these have not worked and discuss fu-ture positioning and the potential for well-located and carefully thought-out projects.”

Steve Tart, executive vice presi-dent of Ben Carter Properties will bring an Atlanta-based perspective to the panel. Tart will discuss tenant types, including upcoming enter-tainment tenants at St. Johns Town Center, and the future of regional development in the area. John Cross-man, president of Orlando-based Crossman & Co., will speak on leas-ing, including vacancies and rent decreases.

Rounding out the panel will be Pat-rick McKinley, leasing agent with Re-gency Centers Corp., and Clint Mur-phy of Murphy Land & Retail Ser-vices. McKinley will share thoughts on the market viewed through the unique lens of a NYSE company, in addition to exploring where the re-tail market will potentially go in the next five to 10 years. Murphy will dis-cuss the market from the perspective of the retailer.


In-depth looks at both local and international business oppor-tunities will be the highlight

of Cornerstone’s Economic De-velopment Update session at the Commercial Real Estate Outlook Conference.

Jerry Mallot, president of the Cornerstone Regional Develop-ment Partnership, the develop-ment arm of the Jacksonville Regional Chamber of Commerce, will lead a discussion on targeted industries for business for North-east Florida.

Mallot’s presentation will focus on seven targeted industries for local business, what is happening in each of the industries and what expectations are in each category.

The seven industries under con-

sideration are: headquarters, fi-nance and insurance services, avi-ation and aerospace, life sciences, logistics and distribution, infor-mation technology and advanced manufacturing.

“We’ll talk about the success we’ve had and the success we ex-pect to have going forward,” Mal-lot said. “[We’ll look at] which ones are the hotter ones and where we’re expecting more success go-ing forward.”

Mallot said though the cur-rent year’s outlook will embody most of the discussion, a look be-yond will make its way into the conversation.

“I don’t know that we’ve set it [a timetable] directly,” Mallot said. “Of course, we’ll be looking more

at the 2010 outlook, but I think we’ll be looking beyond that.”

His presentation will be comple-mented by co-moderator George Gabel, a partner at the Holland & Knight LLP’s Jacksonville office, who will look at international busi-ness development and related ac-tivities such as the port’s function and the area’s ability to grow and expand in international business.

“Certainly the port has played a big part in it,” Gabel said, “but we’ve seen a tremendous interest in Jacksonville from international companies ranging from compa-nies connected to the port to all types of industries to the financial sector and alternative energy. It’s exciting.”

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CORNERSTONE’S ECONOMIC DEVELOPMENT UPDATE■

Jerry MallotPresidentCornerstone Regional Development Partnership

George D. Gabel Jr.PartnerHolland & Knight LLP

11:20 a.m.Room 102

RETAIL 2010 AND BEYOND■

MODERATORS:Geneva HendersonExecutive vice presidentLat Purser & Associates

John O’ConnorFormer anchor CBS Action News 11:20 a.m. Room 104

PANEL: John Crossman, Crossman & Co.Steve Tart, The Ben Carter Co.Patrick McKinley, Regency Centers Corp.Clint Murphy, Murphy Land

MULTIFAMILY MARKET■

Taylor WilliamsSenior vice presidentGrandbridge Real Estate Capital LLC

11:20 a.m.Room 106

10 jacksonville.bizjournals.com ■ THE BUSINESS JOURNAL FIRST COAST REAL ESTATE ECONOMIC OUTLOOK CONFERENCE MARCH 26-APRIL 1, 2010

The message that the city of Jacksonville wants to send to the real estate and develop-

ment community, in regard to being environmentally responsible, in-volves a hands-on approach. During the Sustainability and Energy Effi-ciency breakout session at the First Coast Real Estate Economic Outlook Conference, representatives from the city and regional developers will demonstrate how they are putting their money where their mouth is.

“The city of Jacksonville wants to lead by example, so we have been im-plementing measures within our own organization — common sense mea-sures that use little capital to put in place,” said Ebezener Gujjarlapudi, director of the city’s Environmental and Compliance Department and act-ing sustainability officer. “It is our hope to show people the advantages

to an initial investment in sustain-able and energy-efficient methods.”

Gujjarlapudi will explain Jackson-ville’s participation in the Energy Efficiency and Conservation Block Grant, a program funded by the American Recovery and Reinvest-ment Act. The city has been allocated close to $8 million to invest in proj-ects that will range from retrofitting existing buildings to installing solar parking meters. He also planned to discuss the city’s Sustainability Ini-tiative, which was signed into effect in September 2008.

In addition to Gujjarlapudi, pre-senters will include Bruce Doueck, manager of conservation programs at JEA, and Greg Letnaunchyn of Liberty Property Trust. Doueck will discuss current and upcoming JEA programs that can help businesses re-duce energy and water costs and ways

that businesses and institutions can harvest the benefits of sustainability. Letnaunchyn will address aspects of green building and development. Lib-erty Property Trust has developed five LEED-certified buildings in the state of Florida, including the Butler Plaza III building in Jacksonville.

Philip Elson, vice president of Aerostar Environmental Services, will moderate the panel discussion.

“There are a lot of things happen-ing with regard to going green, and there is a lot of money being spent to secure our energy future,” Elson said. “We want to share the message that the market is out there, driven by the federal government, that pro-motes these types of things within the industry. It is important to note that our city is setting the stage for this region.”


SUSTAINABILITY AND ENERGY EFFICIENCY: OPPORTUNITY FOR COMMERCIAL REAL ESTATE■

MODERATOR:Philip ElsonVice presidentAerostar Environmental Services

11:20 a.m.Room 105

PANEL: Bruce Doueck, JEA

Ebenezer Gujjarlapudi, City of Jacksonville

Greg Letnaunchyn, Liberty Property Trust

Join our executiveNETWORK

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sessions led by industry experts will precede an exciting networking event and

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Registration Deadlines: ListMix Booth: June 1st | Tickets: June 11th

Registration available online at

http://jacksonville.bizjournals.com/jacksonville/calendar/ or contact

Leslie Grayson at [email protected] or 904.265.2236

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MARCH 26-APRIL 1, 2010 first coast rEaL EstatE Economic oUtLooK confErEncE jacksonville.bizjournals.com ■ tHe busIness jouRnAL 11

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