Washington, DC Market Not Hurt by Credit Crunch

(Read more on the debt and equity markets.)

ALEXANDRIA, VA-Delta Associates’ report on the impact the credit crunch is having the real estate industry quantifies both positive and negative developments that are unfolding in the CRE industry. For instance, the multifamily space appears to be benefiting from the credit crunch woes. “Some of our buying clients report a 15-to-40 basis-point increase in cap rates for good product at strong locations; others a 25-to-75 basis-point increase for weaker product at lesser locations,” it reported.

On the other hand, the national office market is being adversely affected by the problems in the credit markets, it found, advising readers to watch submarkets in metro areas that are highly dependent on the homebuilding and home mortgage industries. This could include submarkets in Orange County, CA; Phoenix; and Denver, to name a few.