Commercial real estate in the post-World War II age has been viewed as a cyclical business. Values and rents go up, soften as the economy softens (but generally not to the level of the prior cycle's trough), only to rise again. The current cycle, in which we are bouncing along the bottom, is an extreme version of what experienced landlords, tenants and their professionals have lived through many times. What makes this cycle different is the low or, in some areas, non-existent leasing velocity for all types of commercial leases, coupled with significant difficulties in raising debt or equity for real estate acquisition, development and refinancing. Out of these adverse conditions, landlords and tenants may create opportunities that are mutually beneficial.
