The economic downturn of the past year has inflicted a whirlwind of chaos and uncertainty upon California's commercial real estate industry. The market is volatile; financing is difficult to obtain; loan defaults and foreclosures continue to rise; and sophisticated investors conscientiously wait for the perfect moment to re-enter the market. While the present stagnation presents many challenges, it also provides a unique opportunity to plan for the market's inevitable rebound.

Industry observers speculate that the credit crunch and broader economic problems that have wreaked havoc on the commercial real estate industry will generate an industry-wide movement "back to basics:...