Friday, November 2, 2007

Optimistic words from John Bucksbaum

Here's an interesting quote from the head honcho at GGP from this story:

"Our new rents continue to increase as demand for quality remains high. We’ve completed new and renewal leases for 6.3 million sf of space in the year, 13% higher than the first nine months of 2006. I’m not so na├»ve to say that everything is perfect, we expect to see a softening in certain retail sectors, but not so much that it should change retailers’ expansion plans by any degree."

Of course optimism is in every developer's blood. But this is conference call fodder, and the GGP numbers are telling, as are the still-low vacancies. Short-term pessimism might be a good thing (unless you just bought shares of Coach at $42 to see it plummet to $35), but over even the medium let alone the longer haul I still don't think we're going in the tank.