CRE Deal Drought to Make 2009 Worst in 18 Years
Bloomberg reports: Commercial property sales in the US this year are forecast to fall to the lowest in almost two decades as the industry endures its worst slump since the savings and loan crisis of the early 1990s.
About $16 billion of office transactions will be completed by year-end, according to data compiled by Real Capital Analytics Inc., a New York research firm that has tracked deals for nearly a decade. Real Capital Managing Director Dan Fasulo and Sam Chandan, chief economist of Real Estate Econometrics LLC, said that may be the lowest volume since at least 1991.
"There's no real way to sugarcoat it," Fasulo said in an interview. "A slowdown of this magnitude certainly hasn't occurred since I've been in the business."
The volume of office sales in the second quarter was 97 percent less than the market's peak in the first three months of 2007, according to Real Capital. That reminds some investors and analysts of the S&L crisis.
"Some of the older folks in the industry I talk to said it has a similar feel to the early '90s, when transaction activity went to basically zero," Fasulo said.
See The Big Picture - Trillions of Property at Risk from RCA's July US report.
View the full article on Bloomberg: CRE Deal Drought to Make 2009 Worst in 18 Years
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