Survey: CRE Execs 'Cautiously Optimistic'

Corporate real estate executives are "cautiously optimistic" about the economy, but are still "struggling to deal with a substantial inventory of excess space," according to a survey by Jones Lang LaSalle, an international property services firm headquartered in Chicago and London.In addition, new accounting rules on the impairment of excess space have "created additional hurdles" for CRE executives, the company said. "While the past couple of years have been difficult for CRE executives, some important lessons have been learned," said Richard McBlaine, the company's president for strategic consulting. "The next real estate cycle should see CRE executives putting greater emphasis on the flexibility of their portfolios." The survey found that 49% of respondents were either "highly optimistic" or "somewhat optimistic" about the economy, and that two-third expect to add space by 2005. Jones Lang LaSalle's website address is http://www.joneslanglasalle.com.