Tight credit brings big drop-off in commercial real estate sales
Silicon Valley / San Jose Business Journal reports: After three years of record-breaking sales in Silicon Valley commercial real estate, the market has made a U-turn.
Or as one veteran investment broker put it, “It’s ugly out there.”
Dan Fasulo, managing director at Real Capital, agreed that the credit crunch shoulders most of the blame for the lack of activity because, quite simply, lenders do not want to lend.
“Commercial real estate relies on debt in the normal course of daily business. When that market is in turmoil, there’s a significant impact on sales. There’s no escaping it,” he said. “Almost a year ago exactly we ran into the mess. Little by little, it’s gotten worse and worse. Commercial sales activity has slowed down to a trickle.”
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Posted by: Nina Turner