Zell talking recession

Does anybody care? Well, maybe. The legendary bottom-feeder says that the economy will likely slip into a recession next year, but that the single-family housing market should bottom out. He also expects a slow, downward spiral for office buildings that are not top quality or located in downtown city markets. "This is not a time to own (office buildings) in the suburbs," said Zell, speaking at a real estate conference in Chicago. Many of those properties were financed with large amounts of debt and may squeeze their borrowers who are not able to refinance the principal when interest-only loans come due. I saw no reference to the debt Zell took on as part of the Tribune deal. In the past, he has said that the company could handle its servicing needs. (Reuters)