Stalemate Sales Market

Buyers don't want to pay 2006 prices, seller's aren't moving off the highest closing sale numbers attained in their market. Thus no new supply, limited demand , creating stagnation and it looks like it will here for the rest of 2008. With very few foreclosures in the commercial arena, there will be a fall/winter scenario being set-up for the pivot pt. to move the mkt. in one direction or the other. The best bet right now would be for LOWER prices and even more lower prices as we get into 1st quarter of 2009. Local lenders are trying their best to gather mkt. share from the big guys as they try to get their house back in order.

August- Commercial RE Still Holding

OK, folks, looks like the tenant has more negotiating power in August vs. July. There are VERY FEW MAJOR DEALS getting done. CB Richard Ellis stock plunged on the 2008 sales volume news and Jones Lang along with Grubb&Ellis followed suit. Its all 100,000 sf and under deals getting done. A very hot area is 10,000-50,000 sf for some reason. We are talking warehouses...as far as office space ....one by one sublet space is coming up in bldgs.. as large companies cut back and those cheap sublets really do effect the psychology of the landlord's asking rent direct. The closing sale prices have FROZEN up, nothing new coming on the market and NO price reductions.
Surf's up
Chris