Cushman & Wakefield, one of the nation's largest commercial real estate brokerages, predicts that 1999 will be a strong, steady year for the commercial real estate industry.

At its annual Real Estate and Economic Forecast this week in Manhattan, leading experts gave their prognosis for the world's economy, real estate investment markets, and the New York Area's future in 1999 and beyond.

"Nineteen-ninety-eight has been an interesting year -- a first half of exuberance, followed by a second half of volatility and a lack of clear direction, both in the general economy and most evidently in the capital markets," said Thomas P. Falus, president of Cushman & Wakefield of New York Inc. "Nevertheless, both national and certainly local real estate fundamentals remain strong.''

Dr. Mark Zandi, Chief Economist and co-founder of Regional Financial Associates, an economic consulting firm, presented his views on the current state of the U.S. economy and what to expect in 1999 and beyond.

In his presentation, ``The Economic Outlook: Are We Headed for a Recession?,'' Dr. Zandi concluded, ``Although the New York and national economies in 1999 will not measure up to the heights of recent years, the current expansion is unlikely to end as a result of recent events.''

Next, Randall Zisler, co-principal of Apogee Associates, a capital markets advisory and real estate research firm serving global investors and money managers, which Cushman & Wakefield purchased a minority interest in last year, presented the Real Estate and Capital Markets Forecast.

"While property prices have weakened, increasing private capital flows and an eventual return to normal capital market conditions should restore values to their mid-year levels, provided that the country and the region experience at worse, an economic slowdown and not a recession,'' Zisler said.

John Zuccotti, chairman of world financial properties and senior counsel in the real estate department of the international law firm of Weil, Gotshal & Manges LLP introduced the evening's keynote speaker, Richard Parsons.

Parsons, one of the leading figures in corporate America who helped guide Time Warner into becoming one of the most successful media and entertainment companies in the world, discussed the impact of the digital revolution and the information age on the economy.

"We live in a world of fantastic and accelerating change,'' he said.

Parsons also discussed Time Warner's commitment to New York and their plan to build a new headquarters at Columbus Centre at Columbus Circle, in Manhattan.

Arthur Mirante, president and CEO of Cushman & Wakefield gave the evening's closing remarks and congratulated Mr. Parsons on Time Warner's long-term commitment to New York with the relocation of its world headquarters to Columbus Centre.

"This signifies New York City's continuing prominence as the media and entertainment capital of the world,'' he claimed.

"Never has the real estate market been so healthy and balanced and never has New York City been so strong, so vibrant and so deserving of its reputation as the business and the financial capital of the world,'' Mirante added.

Cushman & Wakefield is an international real estate services firm which globally manages 325 million square feet. Services include office and industrial brokerage, financial services, advisory services, asset services, corporate services, valuation advisory services and research services.

Published: November 20, 1998

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