Making sense of the extraordinary commercial real estate challenges that we face in today’s troubled economic times requires an understanding of where this market has been and where it is going. But when was the last time the Federal Reserve Bank announced in advance that it would keep interest rates at an historic low for at least two years? In a word, never.
In 2005, as the “perfect storm” was brewing that eventually decimated the residential real estate market, we looked back just 10 short years to the closure of the Resolution Trust Corp., saying, “It can’t happen again.” Today, commercial real estate seems positioned to follow the fate of the residential asset class as the economy teeters and loan maturities loom against a backdrop of aggressive property purchases.
Read more...CPExecutive - Guest Column: Commercial Real Estate, 2012
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.