Remember When Fundamentals Were Strong?

For most of the past summer the mantra of the commercial real estate industry was that while the residential market was being battered and capital was harder than ever to come by, the fundamentals of commercial real estate were still strong. This attitude naturally led to the conclusion that as long as fundamentals were strong commercial real estate pricing didn't have to drop by much.

Well so long summer. It has become obvious over the first few weeks of autumn that the fundamentals of commercial real estate are weak and getting weaker and consequently pricing will have to adjust accordingly. The one bright spot for those of us on the transactional side of the business is that falling prices may lead to a slight uptick in transaction volume.

Over the next few days we'll take a quick look at the current state of the fundamentals across various property sectors, starting with retail tomorrow, perhaps the sector with the weakest outlook from today's vantage point. We'll also try to highlight the bright spots in each sector, to give you an idea of the type of deals that can still get done even in today's market.

Llenrock Group