Portfolio Managers Weigh In on Residential and Commercial Recoveries

The economy may be recovering, but even in a recovery residential estate's performance is likely to continue to vary by market and commercial real estate's health is likely to lag that of the broader market, two influential portfolio managers said at a New York Society of Security Analysts meeting in New York. "You've really got to make a decision on a market-by-market basis," said Philip J. Orlando, senior vice president, senior portfolio manager and chief equity market strategist at Federated Investors Inc., when asked at the 4th annual Wall Street Forum how residential RE might perform in a recovery. Commenting on the outlook for CRE, TIAA-CREF's managing director and head of global real estate portfolio management Philip J. McAndrews said its recovery is generally unlikely to occur on a broad basis until after the broader economic recovery becomes more established and credit availability improves. "It's going to take awhile for us to get through this," he said.