Looks like no 90 degree days for NJ, that also bodes for the real estate activity for sales of Office and Industrial property. The spread on the bid/ask is still far apart and the two sides are getting closer on deciding on what a property is worth. Looked at a property today that had an apprisal done recently and used comps from 2006-8 and is THAT the market to judge value? I think not,
over-levered, plentiful loans available created the bubble. Now its time to see what's left of the balloon. Our office banged out nice number of deals the past weeks, more than earlier this year, which we feel is a good sign of decisions starting to get made vs. a fire drill of touring bldgs., only to have corporate reevaluate and sit on the sidelines.
Rates are going down which should help. Forget all that nonsense of inflation, hyper-inflation for now, if Everyone is singing the same song, I want to be on the other side of that trade. There will be a time and place for a re-inflate taking place BUT NOT ANYTIME SOON. Until then deals will get done that HAVE to get done. Buyers who have missed the 1st train in 2006-7 are now stepping up. Let's just see if we have willing sellers.
Chris Galiano, SIOR
NAI DiLeo-Bram & Co.
1315 Stelton Rd.
Pisccataway, NJ 08854
cgaliano@naidileobram.com
Friday, August 14, 2009
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