In a press release issued yesterday by Walt Molony from the National Association of Realtors, the commercial real estate market there is a prediction that commercial markets will be depressed due to, “A sustained lack of credit and the economic slump.” Molony cited Chief Economist at the NAR, Lawrence Yun saying that,"’The credit crunch has especially hammered down some components of NAR‘s commercial leading indicator,’ he said. ‘A lack of commercial credit is a serious threat to the overall economy. The Federal Reserve needs to use the Term Asset-Backed Securities Loan Facility (TALF) to provide liquidity and support for commercial mortgage-backed securities.’"
Click below to read the entire press release:
Commercial Real Estate Activity Continuing To Decline
by Walt Molony from the National Association of Realtors.
I should note that the tightening of the commercial credit markets opens up opportunity in the form of equity financing. Those with access to equity financing will find unprecedented buying opportunities as cap rates rise and commercial property inventories continue to increase over the next 12 to 24 months.
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