This week, we conclude our discussion of the divergent perspectives of the optimists and the pessimists. 11) Cap Rates: Going into this down-cycle, it was expected that cap rates would rise significantly as significant levels of distress were evident in the marketplace. Cap rates had risen anywhere from...

For the past two weeks, we have taken a close look at several factors which impact commercial real estate values and how optimist's (the Bulls) perspectives differ from those of pessimists (the Bears). We continue this discussion below: 8 ) Corporate earnings: Corporate earnings are important as the...

Last week, we began discussing the divergence of perspectives among many participants in the marketplace, some of whom are viewing the future very optimistically and some of whom remain pessimistic. The bulls believe the market has bottomed and a real, sustainable, recovery is upon us. The bears believe...

  As we have progressed through the recent recession and entered recovery mode, I have observed an interesting change in participant's perspectives on where we are headed from here. Up until a couple of months ago, it seemed like there was consensus within the commercial real estate sector regarding...

Two weeks ago, the title of my Streetwise column was, "Why Would a Seller Sell Today if They Didn't Have to?" This prompted several emails from readers asking me to address the flip side of that coin which is why buyers should buy today. The general perception is that prices have either hit bottom or...

  There is no doubt that we are living in a time when there has never been a more closely tied relationship between politics, economics and real estate. In fact, the unprecedented level of government intervention has had profound implications for our real estate fundamentals. This has been true...

 Regular StreetWise reader, Jason Bartlein, suggest I address the question posed in the title of this piece. And it is a great question. Values are well off of their peaks, fundamentals are stressed, capital markets are erratic and participants generally feel that market conditions are difficult....

  The title of this piece makes you wonder what is meant by "they should sell for". What, after all, is value? Many people (particularly appraisers) feel that value is a very different thing than the price someone is willing to pay for a property. There are all types of qualifiers such as "an arms...