To piggyback on Jay's response, I would also offer that there is a big difference, in today's market, between a "willing" and "capable" buyer. Purchase debt, other than owner user debt, is difficult to find. This changes the demand side of the game, which empowers the owner/user buyers and all cash buyers. Increased projected CAP rates and lower prices are the result. I am consulting with many of the regional and national banks on their distressed properties based on both my development and brokerage background. There is a clear and very much overlooked, impact of what I call "capable demand" and its impact on value.
Dec 9, 2009