In Commercial Real Estate Market, Buyers and Sellers Play the Waiting GameNovember 12, 2009 – In The News
What's most striking about the commercial real estate market is how quiet it is. And that near silence is expected to continue until 2010, when the market will likely reach its bottom, with values declining 40% to 50% off 2007 market peaks, according to the Emerging Trends in Real Estate 2010 Report recently released by PricewaterhouseCoopers LLP and the Urban Land Institute.
Michael Kornacki noted there is a great deal of ambiguity regarding value, and there is still a disconnect between the perceived value of an asset and the availability of cash to acquire it. Banks are lending, he says, but on terms that are much more onerous than those to which borrowers have grown accustomed, terms that many potential borrowers are not willing to live with, or not capable of living with.
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