KSU hosts first economic forum

The Marietta Daily Journal

Many of the current problems in the economy are becoming well known and discussed, but what worries Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, is what could still lie ahead.

"The problems with the residential real estate are well known, but with continued economic weakness, I'm increasingly concerned about the commercial real estate sector as a 2009 story," Lockhart said. "Declining commercial real estate markets could put further pressure on already strained financial institutions and markets. And overcoming problems in the financial sector is central to achieving economic recovery."

Lockhart was one of three featured speakers at Kennesaw State University's inaugural "Southeastern Economic Insight Forum" at the Cobb Galleria on Thursday. The event was co-sponsored by RBC Bank.

The other speakers were Dr. Don Sabbarese, director of KSU's Econometric Center, and Craig Wright, RBC Bank senior vice president and chief economist.

"While historically smaller than residential real estate, commercial real estate account for a not insignificant portion of the American economy, at least 4 percent of (Gross Domestic Product)," he said. "Also, commercial real estate is important to the financial sector, and a rejuvenated financial center is essential for economic recovery."

Lockhart said all sectors of commercial real estate are facing problems.

Many are seeing downward pressure of property values because of new construction started before the recession, coupled with effects of the current recession.