Real estate partner Ankur Gupta, based in Winston & Strawn's Chicago office, was quoted in The Chicago Daily Law Bulletin on November 30, 2010. In the article, titled "Real estate lawyers getting busier, but market shaky," Mr. Gupta discussed the state of the real estate market for Chicago lawyers in 2010 and the forecast for 2011.
Mr. Gupta told The Chicago Daily Law Bulletin that he suspects there will be an initial dip in commercial real estate prices, but that they will quickly stabilize. He also believes that further depressed real estate values "will bring new players off the sidelines with substantial liquidity." For people who can buy real estate for the long term, Mr. Gupta said, "I think it's going to be one of the biggest wealth-creating events of our lifetimes."
He also said that he foresees "a continued warming of the market but a big shift back to fundamentals of real estate, far more conservative plays and investor expectations being adjusted to a lower return than we saw in the earlier 2000's." He predicts a shift toward more traditional lending parameters, meaning lower debt to equity, higher equity requirements and other credit enhancements like third party guarantees.