Playing the market cautiously is Frank Stagen’s preferred strategy, at least for the near term.

As CEO of Nitze-Stagen, he doesn’t see any reason to rush into purchasing new properties until the economic horizon clears.

“I think the economy is in a downward gliding path,” said Stagen. “I don’t know how soft a landing we’re going to have. We’re not over-extended and we have no debt. This is a relatively small organization and we’re not inventorying any land.”

Stagen is focused on tending his firm’s major local holdings, including the 2 million-square-foot Starbucks Center on 17 acres in the SoDo district, the 200,000-square-foot Merrill Place in Pioneer Square, and the 1,100-stall Union Station Parking Garage. Nitze-Stagen also handles leasing and property management for 30 industrial buildings in the Frye Industrial Park.

Nitze-Stagen converted Merrill Place into a high tech office campus in 1998. It is 100 percent leased for retail and office. The Starbucks Center is a nationally recognized example of successful redevelopment of a large warehouse building, and a catalyst for redevelopment in the SoDo neighborhood. The facility blends retail, office, warehousing, manufacturing and distribution functions.

Stagen said the dot-com craze was the most irrational event he has seen in his 40 years in the business. “I had never seen anything like that,” he said. Having Starbucks as a tenant gives peace of mind in that volatile environment, he said.

“People may stop buying cars and refrigerators, but they’ll certainly spend $2 to $3 for a cup of coffee,” he said. “They’re a well managed company and they’re doing very well.”

Looking for companies that are extremely well managed is a key to finding stable tenants. And while the economy is softening, Nitze said he doubts his industry will be in for a hard landing. “Any landing for the real estate industry will be moderate, but not severe,” he said. “The real estate industry has had cycle after cycle. The only thing I’m sure of is there will be up and down cycles.”

Uncertainties in the near term are the turn-around of Asian economies and “the strength or non-strength of the dot-coms. None of us really know,” he said. “Psychology has a great deal to do with how deep a slowdown we’re really in.”