Will 2009 commercial real estate transactions exceed 2008?

In Market Conditions - Asked by Teresa S. - Oct 2, 2008
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Answer(s)

Andrew H.
Broker/Agent
East Norriton, PA

Not according to Blumberg Capital:
According to research by real estate investment firm Blumberg Capital Partners, the remainder of 2008 could see “significant price erosion” in commercial real estate in the US – by as much as 15 percent this year and up to 20 percent in 2009. The firm said maturing commercial real estate debt and limited refinancing options would push prices down.
http://www.privateequityrealestate.net/Article.aspx?article=29521&hashID=2CABC021E1CDF0F5AA5F966649AE9257004738D2

Oct 20, 2008
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Juan G.
Broker/Agent
Ontario, CA

Most of the syndicates who made bad purchases and need to liquidate their portfolios have already done so. The remaining players in the market are mostly wealthy landlords who inherited the properties and have no motivation to sell. Why sell now, its better to lease out at discount rates and weather the storm? with the lack of credit there are very few groups competing for those properties and the higher down payment requirements will force a lower bid on the overall price.
As far as lease transactions, NO. Landlords got accostomed to all the first time business owners with monopoly money to invest in businesses which overinflated lease rates. It however will take a while for Landlords to accept the realities of what is market rent. Again most of these Landlords are not savvy enough to understand the principal of equilibrium so they will refuse to do deals at realistic rents because "last year I was getting this much..."

Oct 24, 2008
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Joe V.
Owner/Investor
Plymouth, MI

Just look at the amount of listings right here in LoopNet for your answer. All these listings, and they are adding new ones every day, are expecting to sell. The people that are saying it won't are the people having a hard time finding financing...and they are looking for financing in all the wrong (traditional) places. You can get 100% financing at 100% LTV all day if you know where to go. joe@commercialfinanceconsultants.com

Nov 18, 2008
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Chris S.
Broker/Agent
Coeur D'alene, ID

Yes.
I think sales in 2008 just stalled because everyone was waiting for something. In 2009 we will see more foreclosure sales (but they are still sales) and we will see more sellers getting realistic on their pricing. Both suggest more sales in the comming year.

Jan 16, 2009
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Aurelio M.
Broker/Agent
Torrance, CA

Not a chance.

Jun 12, 2011
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