In fact, some 79% of our participants report that interest-rate cuts levied by Greenspan and his gang have had no serious effect in sales transactions, while only 21% say they can see a cause-and-effect.
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The problem, counters another writer, is tied more into where the rates are being felt: "The cuts have not drained into the mid- to long-term debt markets," says the participant. "Thus, they are not impacting the sales arena. Lenders are slower, more critical and even skeptical of transactions, making it difficult to pursue and close on tough, creative deals." Not only is little help coming from the Fed Reserve, but lender consolidation--such as the recent alliance struck between L.J. Melody and GE Capital Real Estate--is limiting the financing options open to most commercial borrowers, say 61% of our participants.
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And another tells us that this is precisely how the market will play out next year. "The key operative for 2002 is risk avoidance," he says. "The focus is to remain on rental housing as consumers' concerns increase over the slowing economy and deferral of major capital decisions."
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
