What Should I Do?

Some recent private chit-chat heard among a group of prominent real estate dealmakers:

• “Land prices are out of reach.”
• “I’m struggling with low yields.”
• “Opportunities are harder to find.”
• “You can’t make the numbers work on (building) condos.”
• “Not buying existing core assets.”
• “Spread compression is too much.”
• “It’s insane pricing on industrial.”
• “Underwriting is loosening.”
• “It’s a tremendous time to borrow.”
• “Debt has never been cheaper.
• “We’re seeing limited or no call protection–loans will come back to you.”

Have you been hearing the same thing?

But then you read about the deals at “record” prices—mostly in the 24-hour markets as money keeps getting pushed out by institutional investors which need yield and foreign buyers who don’t have anywhere else to put it.