"These acts shatter steel, but they cannot dent the steel
of American resolve."
—President George W. Bush
Buildings can be rebuilt. Offices can be relocated. Confidence
can be restored. Security can be enhanced. But the memories can not
be erased. And they shouldn't. As New York, northern Virginia and the
rest of the country begins the long and arduous task of reclaiming what
was lost on Sept. 11, 2001, the tragic memories of the loss and devastation
will provide the framework and perspective for everything that follows.
However, exactly what will follow remains to be seen. In
this issue's cover story, "Rebuilding," we begin to explore the ripple
effect the terrorist attacks will have on the real estate industry and
how companies will meet those challenges.
Companies operating in New York, particularly in and around
the area of the World Trade Center towers, obviously faced the most immediate impact.
But real estate companies in all markets and in all sectors will in
some way be affected by the events that took place. Will tenants migrate
out of high-profile buildings or congested urban areas? How will building
security be enhanced? What will the economic hardships facing the travel
and retail sectors mean to real estate companies relying on those industries?
Will investors lose faith in real estate stocks?
Time will offer answers to some of these questions, but
time will also present an entirely new set of questions that have not
yet been considered. This article only scratches the surface of the
implications the events of September 11 will have on the real estate
industry. In upcoming issues, Real Estate Portfolio will continue to
profile the rebuilding process.
Other Features
"Crouching Market, Hidden Value" explores the role new
REIT structures may play in revitalizing struggling property markets
in the Pacific Rim.
Building codes are like opinions—everyone has one. "Cracking the Code" examines how companies operating in multiple jurisdictions handle the process of complying with the varying building codes.
Matthew Bechard
Editor-in-Chief
