The presentation from the Charleston Trident Association of REALTORS 2011 Commercial Market Forecast. Includes presentations from: Multi-Family | Todd Wigfield Retail | Tim Metzler Industrial | Mike White, SIOR, CCIM Office | Peter Fennelly, SIOR, MCR and Keynote speaker, Ted Abernathy

3. 2011 Charleston Multifamily Forecast
Supply is on the way!

4. National Multifamily Overview
Vacancy Rates Steadily SIGNIFICANT DEMAND - Units
DECREASING Supply Demand
2008 – 145,700 -11,424
• 8.3% in 2008
2009 – 120,526 -41,708
• 6.7% in 2011 2010 – 56,259 180,070
• 5.7% by 2015 2011 – 31,794 112,826
Real Effective Rent Growth DEMOGRAPHIC SHIFT
(between the age of 20-34)
• 8-10% in several submarkets
Baby Boomers - 1986 – 63 million
Echo Boomers - 2015 – 67 million

5. Charleston Multifamily Development Pipeline
NORTH CHAS – 620 UNITS
SUMMERVILLE – 300 UNITS
DANIEL ISLAND – 300 UNITS MT. PLEASANT – 1,600 UNITS
WEST ASHLEY– 300 UNITS
DOWNTOWN– 272 UNITS

6. New Development on Upper King Street – Downtown Charleston
260-300 room
50,000 sf High-Tech Office Hotel, Retail,
Restaurant(s)
King St.
Spring St.
Hutson St.
John St.
Ann St.
Holiday Inn – 115
rooms
Proposed Hotel
Renovation
Meeting St.
Midtown Mixed Use –
72 Units – Student 200 apartment units
Housing 7,000 sf retail
Map Restaurants Map Retail Map Lodging Map Other Legend
Midtown Bar & Grill Piggly Wiggly (grocery) Hotel Site (full service planned) Charleston School of Law
Chai’s Lounge and Tapas U-Haul Moving & Storage Holiday Inn Site (planned) Public Parking Garage
DASH Station
Basil 52.5 Record Store Embassy Suites (full service) Marion Square (park) (free shuttle)
Closed for Business B-ZAR & Charleston Power Yoga Hampton Inn (limited service) Charleston Children’s Museum
Fish Morris Sokol Furniture Library (full service planned) CARTA (central bus station)
Halls Chophouse Hughe’s Lumber & Supply Francis Marion (full service) Charleston Visitor’s Center
O-Ku Cupcake Holiday Inn (Marriot u/c) Charleston Historic Museum
39 Rue De Jean Gelato Store & French Bakery Federal Bldg. (full service conv.) American Theater
Coast Bar & Grill Dwelling (interior design) Courtyards at 411 Meeting (apt) Music Farm

7. New Downtown Multifamily Development – 200 Units

8. New Development Downtown - Spring Elevation

9. 2011 Charleston Multifamily Forecast
• Economics for both existing assets and new development projects
that are the first to start will be strong
• Occupancy will stay in the mid 90’s throughout the next cycle due to
strong job growth and people wanting to live in or around Charleston
• Capital markets will determine how many deals actually get built in
certain submarkets (ie. Mt. Pleasant)
• Overall, deals in select submarkets will perform well

11. PORTFOLIO OPTIMIZATION...
INTEGRATE INTERNET SALES...
DOWNSIZE STORE PROTOTYPE...
INVEST IN EXISTING STORES...
SUSTAINABILITY IS GOOD BUSINESS...
OCCUPY FAILED LOCATIONS WITH NEW FOOTPRINT…
SIGNIFICANT RENT REDUCTIONS…
REVITALIZE DOWNTOWN MARKETPLACE…
NEW PLAYERS SEEKING KEY LOCATIONS…

17. APPAREL GROCER
SPORTING GOODS & BOATING
ELECTRONICS, OFFICE SUPPLY & HOME
RESTAURANTS

18. RENT COMPRESSION FOR ANCHOR TENANTS…
REDUCTION IN NUMBER OF STORES AND PROJECTS…
FLIGHT TO QUALITY…
DOWNSIZING CREATES OPPORTUNITY...
SIX NEW DEVELOPMENTS...
CHANGE IS CONSTANT...

19. JOB CREATION IS BRINGING MORE CONSUMERS...
DEMOGRAPHIC MIGRATION FROM NORTH TO SOUTH...
QUALITY OF LIFE BRINGS DIVERSE OPPORTUNITIES...
WE CONTINUE TO ATTRACT HIGHER PAYING JOBS...
RETAIL DEVELOPMENT FOLLOWING RESIDENTIAL GROWTH...
RETAILERS WILL ENTER: REI & CRATE AND BARREL...

21. U.S. COMPANIES RACK UP BIG PROFITS DESPITE SLOWING ECONOMY...
RECOVERY REMAINS FRAGILE...
UNCERTAINTY ABOUNDS STIFLING EMPLOYMENT...
MANUFACTURING RELOCATIONS CONTINUE TO FAVOR SOUTHERN STATES...
AEROSPACE AND AUTOMOTIVE EXPANSIONS EXPECTED TO CONTINUE TO
CHOOSE RIGHT-TO-WORK, LOW-TAXATION CONDITIONS
BOEING TAKES OFF WITH 787 DREAMLINER FINAL ASSEMBLY...
CHARLESTON PORT TRAFFIC CONTINUES TO GROW...
VACANCY TIGHTENS... SPEC BUILDING REACHES A TIPPING POINT

22. INDUSTRIAL LEASING CONTINUES ABSORBING 1 BUILDING PER MONTH
CLASS A SPACE IS VIRTUALLY GONE...
INDUSTRIAL LAND SALES PRICE REACHES A NEW RECORD $ PER ACRE.
MAJOR BOEING SUPPLIERS WILL ANNOUNCE NEW FACTORIES...
SPEC INDUSTRIAL BUILDING WILL BEGIN ANEW...
PANAMA CANAL EXPANSION WILL ATTRACT NEW USERS AND DEVELOPERS
MORE RECORD-SETTING LAND SALES WILL CLOSE...
JEDBURG AREA WILL LAND A NEW, MAJOR PROJECT

23. PROXIMITY TO BOEING...
EXPANDING GLOBAL TRADE ATTRACTS NEW SHIPS AND MORE CONTAINERS...
PRO-BUSINESS GOVERNMENT CONTINUES TO FIND ECONOMIC DEVELOPMENT...
OUR QUALITY-OF-LIFE GROWS IN REPUTATION
THE NLRB WILL BE DEFEATED AND DISBANDED...
BOEING WILL ANNOUNCE A SECOND AIRPLACE FOR CHARLESTON
SHIPPING COMPANIES WILL PUBLICALLY ENDORSE PORT OF CHARLESTON
THE WIND TURBINE INDUSTRY WILL EMBRACE OUR REGION
OUR DEFENSE SECTOR WILL CONTINUE TO GROW

24. The Big Picture
(Looking For Perspective in a Changing World)
Ted Abernathy

25. How is the Economy?

26. U.S. Chamber Small Business Survey
The U.S. 8% Your Business
Economy 8%
84% 25%
61%
The Local 14%
Economy 19% 27%
54% Headed in Right Direction
Off on Wrong Direction
Not Sure
Source: U.S. Chamber Small
Business Survey, July 2011

27. The Last Decade Was….Not Good
30% 27%
25% 22%
20%
20%
15%
10% Employment Growth
5%
0%
-1%
-5%
1970-1980 1980-1990 1990-2000 2000-2010
Source: Peter Linneman, NAI Global

28. The Last Decade Was….Not Good
45% 40% 40%
40%
34%
35%
30%
25%
20% 17% Real GDP Growth
15%
10%
5%
0%
1970-1980 1980-1990 1990-2000 2000-2010
Source: Peter Linneman, NAI Global

29. The Last Decade Was….Not Good
70% 61%
60% 47%
50%
40%
27%
30%
20% Real Household Wealth
10%
0%
-10% -3%
-20%
1970-1980 1980-1990 1990-2000 2000-2010
Source: Peter Linneman, NAI Global

30. And then The
Recession
Made Things
Worse

31. Recession & Weak Recovery Impacts
 Soaring poverty rates (15.1% most since 1993)
 Black poverty rate 27%
 Male workers, median income falls to 1973 level
 6% decline in births between 2008-2010
 Most educated metros widened gap
 Government budget cuts reshaping
competitiveness
 Corporate profits largest share of GDP since 1950

32. With Full Credit to TIP Strategies
A Picture is
Worth a
Thousand
words

119. Today Is the Economic Glass
½ Full or ½ Empty ?
“Get your facts first then you can
distort them as much as you
like.” 8 Ounces
Mark Twain
6 Ounces
4 Ounces
2 Ounces
0 Ounces

120. “4 Ounces”

121. Globally

122. Unemployment Rates
12% 10.8%
10.0%
10% 9.1%
8% 7.3%
6.1% 6.0% 6.1%
6% 5.3%
4.3%
4%
2%
0%
US Japan China Canada Euro Area Austrialia India Brazil Russia
Source: Economist Oct 8, 2011

123. Projected GDP Growth 2011
9.0%
9% 7.9%
7%
5% 4.3%
3.6%
3% 1.6% 2.2% 2.1%
1.6%
1%
-1% -0.4%
-3%
-5%
US Japan China Canada Euro Area Austrialia India Brazil Russia
Source: Economist Oct 8, 2011

124. Trade balance as % of GDP
5% 4.9%
4.0%
4%
3% 2.3%
2%
1%
0%
-1% -0.5%
-2%
-3% -2.3% -2.5%
-2.7%
-4% -3.3% -3.2%
-5%
US Japan China Canada Euro Area Austrialia India Brazil Russia
Source: Economist Oct 2011

125. U.S. Exports & Imports
(Goods)
$4,500,000
In $Millions
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2009 2010
Exports Imports
Source: Census, World Almanac 2009 & U.S. BEA 2010

126. U.S. Exports 2009-2011
42% Increase
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
2009- 2009- 2009- 2010- 2010- 2010- 2011- 2011-
Jan May Sept Jan May Sept Jan May
Exports
Source: BLS Sept 2011

127. Less than 1% of U.S. firms
export and of those that
do more than ½ export to
only one country

128. Exports Per Capita
(2009)
$7,764
8000
7000 $6,579
6000
5000
$4,082 $3,621
4000 $3,250 $3,443
$2,531 $2,650
3000 $2,623 $2,428 $2,137 $2,323
$1,823 $1,909
2000 $1,588
$1,197
1000
0
Al A N T
ab rka Flor Ge or Ke nt Loui Miss Miss ort Okla Sout Tenn exa Virg Wes USA
am ns i da gia uc s i o h C ho h e s ini t V
a as ky iana ssipp uri ar ma Car ssee a irg
i oli oli ini
na na a
2011 Competitiveness Redbook

130. Nationally

131. Employment Monthly Net
Change 2000- Sept 2011
600 In thousands 125,000 Jobs/Mo. To keep pace with growth
400
200
0
-200
The best year in the
-400
last decade averaged
-600 208,000 additional jobs
per month…12 years Jobs
-800
2000 2008
Source: BLS Oct 2011

132. How Many New Jobs in the Last Year?
September 2010 to August 2011
 1,288,000 or 1% job growth in private
sector
 Sectors gaining jobs; Manufacturing(+2%),
Prof/Bus Services(+3%), Education &
Health(+2%)
 -312,000 government jobs (-1.5% of
Government jobs)
Source: BLS September 2011

133. Job Growth- Last 12 Months
 44 of 50 states had job growth
 Biggest growth- Texas +269,000, California
+189,600, New York +106,600, Ohio
+74,100
 6 States that lost jobs Indiana, Georgia,
Alabama, Kansas, Delaware, Nevada

134. Personal Saving
as a % of Disposable Personal Income
6% 5.5%
5.2% 5.2% 5.1% 5.2%
5.0% 4.9% 5.0%
5%
4%
3%
2%
1%
0%
Dec-10 Jan Feb March April May June July
Source: BLS Personal Income and
Outlays, August 2011

135. Source: Economics and Statistics
1
-1
ay 10
Estimates of Monthly Retail
M 20
p. 10
Administration Sept 2011
Se 20
n.
Ja -09
ay 08
and Food Services
M 20
p. 08
Se 20
n.
Ja -07
ay 06
M 20
p. 06
Se 20
n.
Ja -05
ay 04
M 20
p. 04
Se 20
n.
Ja -03
ay 02
M 20
p. 02
Se 20
n.
Ja -01
In million $$
ay 00
M 20
p. 00
Se 20
n.
Ja
$500,000
$400,000
$300,000
$200,000
$100,000
$-

136. US Firms in Forbes Global 2000
800
700
751
600
500
536
400
300
200
100
0
2004 2011
Source: Forbes May 9, 2011

137. US Firms in Forbes Global 2000
Growth in 2010
100% Overall, last year was one of the most
90% profitable years for U.S. businesses in
69% history
80%
70%
60%
50%
40%
30% 18%
12%
20%
2%
10%
0%
Profits Sales Value Employees
Source: Forbes May 9, 2011

138. Stock Markets …?

139. Regionally

140. Brookings Metro Monitor
2nd Quarter 2011
Recession and Recovery

141. Employment Changes in the South
July 2010- July 2011
300
In thousands 269.5
250
200
150
100
50 28.1 34.0
8.3 27.9 26.3 17.3 12.8
4.4 8.3
3.6 5.5 1.6 1.5
0
-4.7 -24.9
-50
AL AR FL GA KY LA MD MO MS NC OK SC TN TX VA WV
Source: bizjournals.com Aug 2011

142. % Employment Changes in the South
July 2010- July 2011
3% 2.6%
2.2%
2% 1.6%
1.4%
1.0%
1% 0.7%
0.4% 0.5%
0.1% 0.2% 0.1%0.1% 0.2% 0.2%
0%
-0.3%
-0.6%
-1%
AL AR FL GA KY LA MD MO MS NC OK SC TN TX VA WV
Source: bizjournals.com Aug 2011

143. Regional Manufacturing Employment
Change Aug 2010-Aug 2011
9.0% 8.6%
7.0%
5.0% 3.9%
2.9% 2.6%
3.0% 2.4%
1.1% 1.1% 1.0% 0.8%
1.0% 0.4% 0.4%
-1.0% -0.7%
-3.0% -1.7%
-3.6%
-5.0%
Ch
Gr
Co
Ch
Gr
Ra
At
Na
Ch
Kn
No
Ric
Bir
Jac
lan
ar l
een
ar l
een
at t
lum
leig
shv
rfo
o
mi
hm
kso
xvi
ta
an
est
ott
ng
lk
vil
sbo
ille
h
on
bi a
nv
lle
oog
ha
on
e
le
d
ille
ro
m
a
Source: The Business Journals, Scott Thomas,
September 29, 2011

144. Regional Retail Employment
Change Aug 2010-Aug 2011
6.0%
4.3% 3.7%
4.0% 2.6% 2.5%
2.0% 1.2%
0.9%
0.0%
-0.3%
-0.9%
-2.0% -1.8%-1.8%
-2.5%
-4.0%
-4.5%
-6.0% -5.7%
-6.3%
-8.0%
Ch
Gr
Co
Ch
Gr
Ra
At
Na
Ch
Kn
No
Ric
Bir
Jac
lan
ar l
een
ar l
een
at t
lum
leig
shv
rfo
o
mi
hm
kso
xvi
ta
an
est
ott
ng
lk
vil
sbo
ille
h
on
bi a
nv
lle
oog
ha
on
e
le
d
ille
ro
m
a
Source: The Business Journals, Scott Thomas,
September 29, 2011

145. % GDP Changes in the South
2009-2010
5%
4.0%
4% 3.5%
3.4%
3.2%
2.9%
3% 2.6% 2.8%
2.6% 2.6%
2.3%
2.0%
2%
1.4%1.4% 1.4%
1.1%
1.0%
1%
0%
AL AR FL GA KY LA MD MO MS NC OK SC TN TX VA WV
Source: BEA Economic Recovery Widespread
Across States in 2010, June 7, 2011

146. Regional GDP Change 2010
6.0%
5.2%
5.0% 4.6%
4.4% 4.2%
3.9% 3.9%
4.0%
3.2%
3.0% 2.6%
2.1%
1.6% 1.6%
2.0% 1.3%
0.8%
1.0% 0.4%
0.0%
-1.0%
Ch
Gr
Co
Ch
Gr
Ra
At
Na
Ch
Kn
No
Ric
Bir
Jac
lan
ar l
een
ar l
een
at t
lum
leig
shv
rfo
o
mi
hm
kso
xvi
ta
an
est
ott
ng
lk
vil
sbo
ille
h
on
bi a
nv
lle
oog
ha
on
e
le
d
ille
ro
m
a
Source: BEA September 13, 2011

147. Regional GDP Change 2007-2010
6.0% 5.0%
4.0%
1.5% 1.3% 1.5%
2.0% 0.8%
0.0%
-0.2%
-0.6%
-1.2% -1.1%
-2.0% -1.7%
-2.8%
-4.0% -3.8%
-4.3% -4.4%
-6.0%
Ch
Gr
Co
Ch
Gr
Ra
At
Na
Ch
Kn
No
Ric
Bir
Jac
lan
ar l
een
ar l
een
at t
lum
leig
shv
rfo
o
mi
hm
kso
xvi
ta
an
est
ott
ng
lk
vil
sbo
ille
h
on
bi a
nv
lle
oog
ha
on
e
le
d
ille
ro
m
a
Source: BEA September 13, 2011

148. Regional Income Change
Change July 2010-July 2011
Non-farm private hourly earning inflation adjusted
2.0% 1.1%
0.8%
0.0%
-0.1% -0.4%
-2.0% -1.7% -1.8%
-4.0% -3.2% -3.4%-3.1%
-4.1%
-4.9%
-6.0% -5.9%-5.6%
-8.0%
-8.4%
-10.0%
Ch
Gr
Co
Ch
Gr
Ra
At
Na
Ch
Kn
No
Ric
Bir
Jac
lan
ar l
een
ar l
een
at t
lum
leig
shv
rfo
o
mi
hm
kso
xvi
ta
an
est
ott
ng
lk
vil
sbo
ille
h
on
bi a
nv
lle
oog
ha
on
e
le
d
ille
ro
m
a
Source: Garner Economics, Tom Tveidt, September 2011

149. (NATIONAL)

151. Change In Housing
Value Last Year
0%
-2%
-4%
-6% -5.9% -5.0%
-6.4% -6.6%
-8% -8.1%
-8.8%
-10%
-12%
-14% -13.6% -13.4%
-16% -14.9%
Un Sou Nor G Vir Ari Cal Flo Nev
i ted th C th C eorgi gin
ia
zon i for rid
a ada
Sta aro aro a a nia
te s l ina l ina
Source: FHFA Price Index, period ending 03/2011

152. Change In Housing
Value Last 5 Years
10%
0%
-10%
-9.6% -6.9%
-20% -18.8% -14.6%
-30% -24.5%
-40%
-46.0%-45.5%
-50% -49.5%
-60% -58.1%
-70%
Un SC Nor Geo Vir Ari Cal Flo
i ted th C rgia gin zon i for rid Nevad
Sta aro ia a nia a a
te s l ina
Source: FHFA Price Index, period ending 03/2011

153. Regional Housing Price Index Change
One Year
2.0%
0.0%
-2.0% -1.4%
-3.1%
-3.1% -2.7% -2.5%
-4.0% -3.6%
-5.0% -4.9% -4.7%
-6.0% -5.9% -5.4% -5.8% -6.0%
-8.0%
-9.0%
-10.0% -9.2%
-12.0%
US
Ch
Gr
Co
Ch
Gr
Ra
At
Na
Ch
Kn
No
Ric
Bir
Jac
lan
A
ar l
een
ar l
een
at t
lum
leig
shv
rfo
oxv
mi
hm
kso
ta
an
est
ott
ng
lk
vil
sbo
ille
h
on
ille
bi a
nv
oog
ha
on
e
le
d
ille
ro
m
a
Source: Federal Finance Agency, 2nd Quarter 2011

154. Regional Housing Price Index Change
Five Years
10.0% 6.1%
5.0% 2.1% 0.9%
0.2%
0.0% -0.4% -1.3% -1.8%
-5.0% -2.6%
-5.5%
-10.0%
-11.5%
-11.9%
-15.0% -14.4%
-20.0% -18.8% -18.4%
-25.0%
-30.0%
-30.8%
-35.0%
US
Ch
Gr
Co
Ch
Gr
Ra
At
Na
Ch
Kn
No
Ric
Bir
Jac
lan
A
ar l
een
ar l
een
at t
lum
leig
shv
rfo
oxv
mi
hm
kso
ta
an
est
ott
ng
lk
vil
sbo
ille
h
on
ille
bi a
nv
oog
ha
on
e
le
d
ille
ro
m
a
Source: Federal Finance Agency, 2nd Quarter 2011

156. The United States Is In a Rapidly
Changing Economy and the
Impacts Are Real
What Is the New Normal?
“The future is not some place we are
going to, but one we are creating.”
John Schaar

157. A Few Things To
Think About

158. 1
The Future of
U.S.
Manufacturing

159. US Industry Shifts Over the Past
50 Years (Manufacturing)
25,000
In thousands
20,000
15,000
10,000
5,000
0
60
63
66
69
72
75
78
81
84
87
90
93
96
99
02
05
08
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
20
Manufcturing
Source: BLS April, 2011

160. % Manufacturing Job Losses
1990-2000
20%
8%
10% 5%
0%
-3% -4%
-6% -6%
-10% -9% -10%-12%
-13% -12%
-16% -17% -15%-13%
-20%
-30%
-40%
-50%
AL AR FL GA KY LA MD MO MS NC OK SC TN VA WV
Source: VEDP Data Base Aug 2011

161. % Manufacturing Job Losses
2000-2010
20%
10%
0%
-10%
-20%
-22%
-30%
-31%
-33% -33% -33% -35% -33% -34% -33%
-40% -37% -35%
-39% -38% -39%
-43%
-50%
AL AR FL GA KY LA MD MO MS NC OK SC TN VA WV
Source: VEDP Data Base Aug 2011

162. Manufacturing Workforce of the Future

163. The Churn in the
Economy
2

164. Business Employment
Net Private Job Gains and Losses By Quarter
1,000
500
0
-500
-1,000
-1,500
-2,000
-2,500
-3,000
2000-1
2000-3
2001-1
2001-3
2002-1
2002-3
2003-1
2003-3
2004-1
2004-3
2005-1
2005-3
2006-1
2006-3
2007-1
2007-3
2008-1
2008-3
2009-1
2009-3
2010-1
2010-3
Source: BLS Business Employment
Dynamics, August 2011

165. Business Employment
Dynamics (Churn)
Net Private Job Gains and Losses
In millions
10,000
8,000
6,000
4,000
2,000
0
-2,000
-4,000
-6,000
-8,000
-10,000
2000-1
2000-3
2001-1
2001-3
2002-1
2002-3
2003-1
2003-3
2004-1
2004-3
2005-1
2005-3
2006-1
2006-3
2007-1
2007-3
2008-1
2008-3
2009-1
2009-3
2010-1
2010-3
Source: BLS Business Employment
Dynamics, August 2011

166. Businesses Opening and Closing
1,000,000
800,000 644,122 670,058 668,395 626,400 552,600
600,000
400,000
200,000
0
-200,000
-400,000
-600,000
-800,000 -604,201 -619,695 -620,732 -707,446 -721,737
-1,000,000
2005 2006 2007 2008 2009
Births Closures/Bankruptcies
Source: US Small Business
Administration Aug 2011

167. The Bar To Be Prosperous Is
Rising
3
If We Don’t Start Expecting More
We Need To Start Expecting Less

168. Middle-Skills
 Require more than a high school degree
but less than a BA degree
 52% of employers said in 2011 manpower
survey that they were struggling to fill
positions, an all-time high

169. Southern Jobs By Skill Level 2009
High Skill
Middle Skill 29%
51%
Low Skill
20%
High Skill Low Skill Middle Skill
Source: Middle skill jobs in the American South’s
Economy, National Skills Coalition, August 2011

170. Southern Skills Mismatch
20%
Low-Skill
25%
51% Jobs
Middle Skills
43% Workers
29%
High Skills
32%
0% 10% 20% 30% 40% 50% 60%
Source: Middle skill jobs in the American South’s
Economy, National Skills Coalition, August 2011

171. 4
The World Has
Changed…Has
the U.S. Role?

172. America’s Self-Image & Global
Image Is Changing
 Tallest building…Dubai
 Richest Man…Mexico
 Largest Publicly Traded Company…China
 Producer of the Most Movies….India
 Biggest Gambling Town…Macao
 Largest Ferris Wheel…Singapore
 Only 1 of 10 Largest Shopping Malls

173. The Rise of the Rest
Who and How We Compete

174. So What Next?
 Total Economy- Today the reality economy
 Minus increased savings
 Minus increased debt
 Minus bubbles in housing wealth and stock
market wealth
 With slowing growth in new income and new
people
 Equals slow growth and new realities

175. So What Next?
 Global slowdown will push a weak recover to the edge
 In a national political year businesses usually hold their
cards
 Housing is close to bottom but “underwater” losses will
drag it for several more years…probably slightly increasing
sales but values will continue to slide
 Job growth will be slow…for a while
 Real estate will face changing business models
 Very Uneven- Regions that succeed will focus on
strengths, be globally aware and engaged, and will
understand the role of talent

176. Despite Our Current Gloom, the
United States Will Be One of the
Major Global Powers for a Long
Time

177. “Whether you believe you can do
a thing or not, you are right.”
Henry Ford

178. Southern Growth Policies
Board
 Since 1971,Bringing Together Governors, State Legislative
Leaders Business Leaders, Higher Education Leaders, and
Citizens
 Help communities understand the changing context of
competitiveness
 Follow us on Twitter or LinkedIn or join as an
associate member
www.southern.org
Public policy is about making choices, Southern Growth informs choice

179. Thank You
Questions?
Ted Abernathy
Southern Growth Policies Board
tabernathy@southern.org