| Relationships between commercial real estate (CRE) stakeholders could ease shocks in the CRE market during economic downturns. The purpose of this study was to learn the critical components of failure within the CRE market during major economic downturns (business loss, loss of capital for business investment, employment opportunity loss, reactions of CRE stakeholders to economic shocks, and capital market reactions) within the Phoenix, Arizona marketplace. The study was a qualitative case study research designed, to learn the influences and reactions of key stakeholders during the most recent economic downturn, within the study market during the economic collapse starting in 2007. The perspectives of key individuals in the designated market were used to learn how key stakeholders within the CRE market like owners, banks, tenants and brokers, and governments reacted within destressed markets and whether their actions within these markets magnify downturns. Interviews with stakeholders determined three main concerns: 1) What these stakeholders believed were the major contributing factors that created the recession, 2) The actions they took to protect their positions in the down market, 3) Steps that could be taken locally to support the CRE industry during future downturns and recovery. This study was designed to understand the relationship between these stakeholders and devise a strategic plan to improve management decision-making among stakeholders to both lessen the impact of economic downturns and quicken recoveries within the study market. |
