May 12, 2008
..."The softening market means that all developers are having to re-evaluate their plans. Many of these projects were originally conceived with very aggressive rents both for the residential and the commercial," said Raphael Bostic, associate director for the USC Lusk Center for Real Estate.
"Part of the difficulty in doing real estate development is that you have to be a forecaster, and for many projects the forecasts just aren't matching up with what's actually happening," he said.
Bostic noted that many Downtown projects have been underwritten "pretty aggressively." He said he expects lenders will revisit some projects and developers...