Goff: No question that the uncertainty of the economy has been the most difficult challenge I’ve had to face. In my business career, there have never been so many factors impacting the economy: the threat of war, the reality of terrorism and the exposure of fraud within our financial system.

Our biggest challenge going forward is to swim upstream in the relatively strong current of a tough economy. The threat of war will be this year’s big issue—which seems to be a question of “when and how long” rather than “whether or not” it will happen. There is potential in 2003 for (President Bush’s) new legislation in the tax area to have an affect on the REIT industry as well. We are already spending considerable time strategizing on the potential impact to our structure as a REIT, assuming revised tax treatment of dividends. At the same time, we cannot neglect our basic business, which is serving our customers and keeping our office space leased.

Portfolio: Why does Crescent primarily invest in Southwestern cities? Do you feel this market has advantages over others?

Goff: Absolutely. We’ve been contrarians in this regard. The Southwest continues to be painted with the brush that it is often overbuilt, but I look at that as an antiquated characterization. The issue of potential overbuilding ignores the fact that capital now governs new development, not availability of land. The statistics over the last 10 years prove this point. From a cost, talent, and quality of life standpoint, there are more reasons to relocate to the Southwest than anywhere else in the nation: low taxes, corporate-friendly state governments, it’s relatively inexpensive, has great transportation, and the Central time zone offers travel advantages for business.

This phenomenon will continue because, in this economy, it is very difficult for companies to increase their revenues, yet the need to boost the bottom line is still there. That means expenses must be cut, which leads companies to look for less expensive labor and less expensive real estate solutions. We have both.

Portfolio: You started your career as a CPA. How did you get involved in the commercial real estate industry?

Goff: I worked for a public accounting firm in Houston, where my primary client was a large real estate developer who convinced me to make a career change. Subsequently, I married and moved to Fort Worth and went back into public accounting, where Richard Rainwater was my primary client. I joined Richard shortly after he left the Bass family in 1986, and I’ve been associated with him ever since.

Prior to the 1990s, we owned no real estate because the capital driving the industry was undisciplined. As the industry collapsed in the early 1990s, Richard and I began building a portfolio of premier real estate assets. We took the company public in May 1994. I feel that my experience in public markets and investing in other sectors, as well as in real estate, gives me a well-balanced perspective.

Portfolio: You have three children. What are their ages and interests—will they follow your business lead?

Goff: I have two sons, ages 13 and 18, and a daughter, age 20. Both of the boys balance their love of sports with a tough academic schedule, and both are enterprising as well. My 18-year-old already has a plan for a business he intends to start in college, and my 13-year-old has a thriving disc jockey business. My daughter is very artistic and is interested in interior design and architecture.

Portfolio: I understand you are an avid skier; what other hobbies do you enjoy to get away from work and relax?

Goff: My favorite place to ski is Beaver Creek, as it has a variety of terrains, is not crowded, is very family friendly, and is absolutely beautiful both summer and winter. I also love to fly fish and play golf, but golf gets a minimal amount of attention because it is so time consuming—maybe later in life when I have more patience. I enjoy playing tennis, as well as bird hunting and sailing. I don’t count reading as a hobby, but I do read a lot: three or four newspapers every day and numerous business and political periodicals as well as books, as often as I can.

Portfolio: What are some of your favorite vacation spots?

Goff: I try to mix business with pleasure as much as I can, and fortunately Crescent has investments in some wonderful places that I frequent: Canyon Ranch, Sonoma Mission Inn, Ventana Inna and Spa in Big Sur, and Park Hyatt Beaver Creek. Plus, I enjoy traveling to Europe because it forces me to slow down. There is so much in the way of culture and architecture confined in a relatively small geographic area that can be explored in a short period of time. We can learn much from the Europeans. They make better use of their limited resources (including real estate) and of their time—enjoying what they have and making the most of their surroundings. The Sheryl Crow song says it best, “it’s wanting what you have, not having what you want.”