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