Urban Land Institute member and Florida CEO, Stephann Cotton was on hand for one of the largest gatherings of economists, land planners and real estate developers in North America earlier this month, in Washington, DC.
According to Cotton, the next real estate cycle will be at least a ten-year rebound, as the market picks up—yet anyone in real estate right now needs to be patient, stabilization will be slow and steady. “Florida’s real estate recovery will definitely be fueled by international investors, with South America and Canada leading the way—the trophy properties, the A-list oceanfront properties are recovering the quickest,” explained Mr. Cotton, CEO of the real estate sales and marketing firm Cotton & Company. “Economists at ULI’s fall meeting anticipate an increase in the number of real estate deals throughout the country—investor confidence is rising, yet according to ULI’s senior fellow for Finance, Stephen Blank, we’re entering the ‘era of less,’ meaning we’re moving toward more realistic return expectations.”
Cotton was encouraged by FDIC chairman Sheila Bair’s presentation and forecasts for future real estate projects, regulatory policy changes and the restructuring of loans.
“The FDIC is not repeating the creation of an RTC (Resolution Trust Corporation)—originally formed to discount properties in order to sell cheaply and quickly. This year, they’ve extended low interest rates, giving those holding non-performing assets time to recover,” explained Cotton. “The concerns potential buyers have right now, the things that most keep them from buying include: taxing policies, not getting equity out of their homes and lack of inflation.”
This year’s Urban Land Institute’s fall conference focused on land planning concerns, managing risk and current investment opportunities in North American real estate. According to Cotton, the overall consensus at the conference was strong regarding opportunities, risks and the need for patience.
About Cotton & Company
Cotton & Company (www.cottonco.com) is a leading real estate sales and marketing firm that has represented more than 1,600 communities over the past 27 years. Cotton delivers effective marketing strategies, internet-based data management, advanced digital expertise and new media marketing campaigns for residential real estate destinations. Cotton & Company specializes in sales management and repositioning assets to meet the changing needs of the emerging market.