NEWS RELEASE

Cushman & Wakefield of New Jersey, Inc.
One Meadowlands Plaza
East Rutherford, New Jersey 07073

Media Contact:            Evelyn Weiss Francisco / evelyn@caryl.com / (201) 796-7788

CUSHMAN & WAKEFIELD’S EISEN REFLECTS ON N.J. REAL ESTATE MARKET
45-Year Industry Veteran Discusses Cycles, Changes and Opportunities

EAST RUTHERFORD, N.J., March 5, 2009 РDonald P. Eisen, an executive managing director with Cushman & Wakefield, Inc., is one of the most recognized and respected members of the New Jersey commercial real estate community. Over the course of a 45-year career that began in brokerage, he has earned a reputation for integrity, commitment and accomplishment in New Jersey’s corporate community and beyond. A member of the Cushman & Wakefield team since 1980, Eisen continues to contribute to his firm’s position as a commercial real estate industry leader in the Garden State. In the following Q&A interview, Eisen reflects on the current market slowdown, how it compares to others he has witnessed, and what we can expect moving forward.

We talk about the cyclical nature of the commercial real estate industry. Does this current slowdown fit the model?
This slowdown does not fit previous models. The last two downturns were very much related to the commercial markets getting out of balance. Each time, it took four or five years to work through. Those who were persistent, wise and understood how to take advantage of it came out stronger and wealthier.

These earlier cycles correlate with business expansions and contractions. This time, however, it is different. The last business expansion was the result of easy credit. And the fallout is a pandemic – it is across every piece of the financial community. It includes every facet of real estate, having started in residential and made its way through office, industrial, retail and multifamily. The failure of our whole financial structure globally makes this the granddaddy. When we rebound, things will have changed.

In what ways will they change?
We are going back to basics. I think we will see a huge de-leveraging of our society. Moving forward, if you want to buy a piece of property, you will have to use some capital.

We thought we had learned our lesson in the early 1990s. At that time, we saw aggressive construction of spec buildings stemming from tax law changes and optimism in the future. When the crash came, the RTC dealt with property that failed. I think we may see some kind of similar governmental setup created to deal with the now “toxic assets” that so many financial institutions hold today – nationally and globally. We are experiencing a consolidation of financial institutions, which will continue for some time to come.

I think we will undergo a continued and growing emphasis on the greening of our society and our economy. New energy sources will take off in the form of wind, solar and other power. I expect that the huge problems the automobile companies are going through will create a more efficient industry and a reinvented automobile.

I think that some of our brightest young minds will turn away from “how much can I make?” to “what can I do to make a difference?” The next generation is pushing for change, which is a concept that should make us all feel good.

What advice would you give, right now, to your industry peers?
It is important not to get tangled up in the day-to-day “bad news.” We have to remember that, in light of staggering unemployment, 90 percent of Americans will continue to be employed and receive paychecks. People will keep having children. They are going to need food, medical services and education. They are going to require banking. They will want to be entertained, and they will continue to travel. The government will continue to spend money repairing bridges and building roads.

Yes, we are in choppy waters now. We know that until the banking system gets more balanced and we have some debt flowing, things will be rough and tumble. But people will do what they need to do. All this tumult will create new real estate opportunities.

The most overriding lesson that I have learned through experiencing so many other recessions is that they all came to an end. This one will take some time, but remember, it took years of excess to create this current crisis. It won’t be corrected overnight. When we come out of it we will see a changed landscape. As real estate professionals, our challenge is to anticipate some of these changes, participate in them and support owners and tenants through these difficult times.

In the current climate, where are the windows of opportunity?
Many investors and developers stopped buying properties because they could not make sense of the market. Now financing is presenting a major hurdle. Anyone on the sidelines with cash will be rewarded wildly. If they are liquid and can make it through, this is a great time for owners, developers, brokers, appraisers and anyone else to be in the business. While not much is happening right this minute, the survivors will enjoy amazing opportunities.

In the meantime, we must work to create the best possible business climate. For our government, this downturn presents an outstanding opportunity to take a look at policies and procedures with the goal to make it easier for companies to do business in New Jersey. We have terrific chance to find a balance between the environment and the needs of our business community.

How does New Jersey fare compared with other markets nationwide?
We have a great location in New Jersey. The Northeast is a powerful place – the best of the best want to prove themselves here. We always have been on the cutting edge. Our geographic location and infrastructure are unparalleled. We have an outstanding education system and great medical resources. We have a huge population, and as long as it continues to grow, we will continue to prosper.

In terms of our tenant base, the financial and insurance industries have been hit hard, and we are seeing consolidation within the pharmaceutical sector. These shifts will challenge New Jersey. Still, we survived the contraction of the telecom industry, and the creative ability of New Jersey to keep reinventing itself provides me with great optimism.

For this reason, New Jersey will recover well. We are in an especially strong position to take advantage of emerging green businesses. We have the density, the need and the resources that can help to launch this new era.

What can we expect this year?
We will see significant shuffling around as people feel for the bottom. Only the bravest will buy on the way down, and we are still working our way down.

Still, I am advising my clients to keep their eyes open while paying close attention to pricing. There exist great opportunities for tenants and investors to acquire real estate that for the last 15 years has just not been available or affordable. This includes well-located, high-value properties.

Ultimately, it is a good time for those who are not faint of heart. A new world awaits – it is just a painful moving away from the old one.