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Is there a commercial RE crash coming? Share
Question Title:  Is there a commercial RE crash coming?
Is there a commercial RE crash coming and if so, how will it effect the US economy?
Mark
Thu. Apr 1, 2010
(Professionals may Click here to answer question)   |  Expert Answers(1)
 
Expert Answer:
Ron
Wed. May 26, 2010:
Mark:

Your question is one asked by many people everyday. The answer is not so simple. Since I cater to representing tenants, my perspective is somewhat narrowed.

I have recommended to many that they read the following article from my firm: http://www.newmarkkf.com/Uploads/FileManager/White%20papers/third_economy.pdf

I read an interesting article today in the Wall St. Journal that shows just how challenging our commercial real estate market is. In the last year, many have given significant amounts of money to successful private equity funds focused on the purchase of quality commercial real estate. These funds have now given back much of the money! Read more here:
http://online.wsj.com/article/SB10001424052748703341904575266880181159428.html

In short, anyone looking to invest in commercial real estate today needs to complete an extremely detailed investigation/analysis of the property and the submarket that property rests in. Employment is a key factor in properties being leased up and, personally, I do not see the job market improving all that much in the next year.


 
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