Advice for commercial real estate

From Live Blogging a Commercial Real Estate Group Therapy Session

Boiled down:

1. Interest rates are running over 10% for any deals that are getting approved
2. Most of the deals are distressed and firesale, so don't try and sell unless you're in trouble
3. Most of the agents are too young to remember any downturn (I'm personally thinking that this means many of them will leave the industry)
4. The author suggests that properties are selling at a 30% discount, mainly because no one can get financing

Do read the original article, with more details on the blogger's own market, Arizona I think.

My thoughts:

1. In Northwest Indiana we are not having as hard a time with commercial real estate, at least we aren't yet.
   
2. Some of the small banks still have money they can lend, albeit at lower LTV's than in the past, but it can be done.
   
3. Agree that selling right now is probably a bad idea, why sell into an irrationally depressed market?
4. Housing is key - homebuyers are key. We all need to celebrate the housing recovery, which in NW Indiana has begun, and help the process by buying, refinancing, remodeling, and promoting all the above. If you want to be succussful in commercial real estate ownership, management, leasing, or development ... you have to want and help create a successful residential real estate market.