Report Predicts Commercial Real Estate Slowdown in 2008
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The recent credit crunch is going to show it’s true power in a major slowdown in the commercial real estate market in 2008. A report issued by PriceWaterhouseCoopers and the Urban Landscape Institute, written by Jonathan Miller of the Matrix, has been released and the outlook is expecting the stellar returns of the past 5 years.
According to the report, some 600 of the leading real estate experts in the nation expect capitalization rates to rise and risk to be repriced. More than three-quarters see stricter underwriting standards on the horizon, but despite that they expect real estate investments will still outperform the stock market.
“The commercial real estate market has been going full throttle for several years with easy money and low interest rates that drove some sectors into questionable lending practices and highly leveraged spending,” said Tim Conlon, partner and U.S. real estate practice leader, PricewaterhouseCoopers. “But the run went on too long for some participants. Those who went beyond moderation will likely experience some headaches in 2008.” via the Pacific Business News
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
BY USING FIRST CLAIM INSURANCE ADJUSTERS YOU WILL HAVE THE ABILITY TO LOOK AT YOUR INSURANCE SETTLEMENT AND REALIZE FIRST ...
Comment by Dave Lorti on 18 October 2007:
Interesting on the commercial side. Anecdotally, when I was looking at small apartment complexes for sale about ~1 year ago, the challenge was that pricing reflected a future ideal rent situation so that a new buyer was expected to pay the existing seller for what they MAY be able to achieve through higher rents as opposed to how the property was actually performing. Suffice to say, nearly all the properties presented a negative cash flow situation for a new buyer despite possible future rental increases. I knew this part of the market was affected like the residential in a way.