New Market Rules for Commercial Real Estate

With computers it is a yes or a no; it is all ones and zeros. That is unless your computer acts human and freezes up. You see, with humans we have yes, no, maybe, and what if. The current commercial real estate market is reacting to the human element, and for the past two years now, we are operating on maybe and what if, with little or no yes and no.

Most have had the good pleasure of reading or listening to recent commercial real estate market forecasts and reports. For those of you who have not let me summarize, “Chicken Little has called it and the sky is falling.” If you purchased or refinanced in ‘05, ‘06, ‘07, or ‘08 and used high leverage, Chicken Little is right, and much if not all equity has fallen out of the deal.   I am not a doom and gloom guy, it is time to go back to the yes and no, without the maybe and what if.

Read the entire editorial: Download April 2010 article.

John Taylor is an Investment Specialist with Commerce Real Estate Solutions. He can be reached at 801.303.5415 or jtaylor@comre.com.

Reproduced with permission of The Enterprise, Utah’s business journal,www.slenterprise.com.

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