Mergers and acquisitions in the commercial real estate industry are nothing new. But if the apparent increase in activity of deals didn't catch everyone's attention, then the sheer magnitude of Equity Office Properties Trust's $7.3 billion acquisition of Spieker Properties, Inc. certainly did.
But is bigger necessarily better in this industry? It depends. Larger REITS can leverage economies of scale and provide a diverse portfolio. However, when markets fluctuate smaller companies are better positioned to move quickly and capitalize.
In this issue, our "Is the Dealing Done?" cover story focuses on what effect continued consolidation will have on the publicly traded real estate industry. Several leading industry analysts give their take on what we can expect and where all this strategic maneuvering will end.
Other Features
In our feature on the rise of build-to-suit development, "Suits Them Fine," we explore why an increasing number of REITs are finding that "the customer is always right." Developers have been creating build-to-suit properties for a long time. However, the number of projects being built this way has risen as more tenants request specific building requirements that can't be met by existing properties on the market.
In "Failing Grades," we examine the impact the nation's crumbling infrastructure will have on real estate companies and developers. As the number of infrastructure-related problems increase, someone will have to pay the bill—and it may just be developers and real estate companies.
Share Your Thoughts
Enough from me, what do you have to say? This is your industry and your magazine. Send me an email (mbechard@nareit.com) with your opinions and thoughts on where the industry is headed and what trends will affect how we get there. I look forward to hearing from you.
Matthew Bechard
Editor-in-Chief
