http://www.therealestatebloggers.com/2007/10/18/report-predicts-commercial-real-estate-slowdown-in-2008/ Real Estate Blog, Mortgage, and Development News Sat, 20 Mar 2010 11:25:08 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.therealestatebloggers.com/2007/10/18/report-predicts-commercial-real-estate-slowdown-in-2008/comment-page-1/#comment-85569 Dave Lorti Fri, 19 Oct 2007 03:19:34 +0000 http://www.therealestatebloggers.com/2007/10/18/report-predicts-commercial-real-estate-slowdown-in-2008/#comment-85569 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. 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.

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