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May 1, 2017

Some Money Managers Plan Now for Recession Later

By Partner ESI

Partner CEO Joe Derhake, PE was interviewed by Pensions and Investments about the state of the construction industry. Asked about the risks inherent in hot or overheated real estate markets, Derhake noted that the irony of a recession is that it gets hot before it gets cold. “In construction, a contractor may have a great A team and a decent B team, but the contractor’s C team is not very good. In gateway markets, contractors and subcontractors are stretched… They are running more crews and more C teams out in the field, and that creates risk. The time element is also a risk. Contractors are rushing to complete projects for fear that otherwise they will be delivering completed projects in a recession.”

Derhake’s insights were published in the May 1, 2017 print issue, and the full article can also be accessed online here.

About the Authors

Partner ESI

Partner ESI

Founded in 2007, Partner Engineering and Science Inc., is the leading provider of engineering, environmental, energy, and construction consulting for the commercial real estate (CRE) industry. Touching 1 in 5 CRE transactions in the U.S., Partner is widely recognized as the largest and best provider of third-party physical due diligence reports, including Phase I Environmental Site Assessments, Property Condition Assessments, Seismic Risk Assessments, Zoning Reports, ALTA Land Title Surveys, and Construction Risk Management. Partner’s connectedness to the CRE market gives it an unparalleled view into CRE trends and risk management insights. Partner also provides a full suite of consulting services to support the entire real estate lifecycle, including: Geotechnical Consulting; Building Systems Consulting; Capital Management and Project Implementation Support; Environmental Health & Safety Consulting; Energy, Sustainability & Resilience Consulting; and Site Civil Engineering. With a responsive approach scaled for speed and agility, Partner helps clients manage risk, make smart investments, optimize asset performance, and win at their real estate investment strategies. Based in Torrance, Calif., Partner has over 1,400 employees in 40 offices around the globe.

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