BANKING & FINANCE - Jan. 16, 1992

Developers Expect Tighter Credit: In a fresh indication of how severely the credit crunch is hampering the real estate industry, a new study shows that 89% of the developers surveyed expect tighter financing terms this year. Developers “have a very, very pessimistic view of what capital will be available,” said Kathleen M. Connell, author of the report and head of UCLA’s Center for Finance and Real Estate. The study was based on a poll of 140 U.S. developers, including 65 based in California. In one of the more dramatic findings, only 27% of the California real estate companies said they are optimistic about their prospects for the next five years, down from 54% a year ago.