Here’s an interesting take on the state of commercial real estate loans and values:

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/30/AR2010093006913.html

‘Delay and pray’ won’t work for commercial real estate

Some of the biggest names in commercial real estate came to Georgetown University’s McDonough School of Business this week to give their assessment of where their industry stands after the worst bust since the Great Depression.

The conversation among Michael Fascitelli of Vornado Realty Trust, Thomas Flexner of Citigroup, Scot Sellers of Archstone-Smith and Chris Nassetta of Hilton Worldwide was remarkably candid, good-natured and jocular. But I came away with the distinct impression that conditions in the industry will have to get worse before they can get better.

It’s been two years since the credit bubble burst, and commercial real estate prices have fallen by an average of 40 percent. The problem now is that the industry remains paralyzed. Because financing has dried up, deals aren’t getting done, and because there are no deals, nobody knows what anything is worth. That makes financing even more difficult.

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