May 26, 2011
This week’s OBP Perspective is provided by Mike Sullivan:
Crank up the volume. Most instinctively think about increasing the decibel level while listening to their favorite tune when they hear this phrase. But those of us in the commercial real estate world are thinking of our own sweet sounds. The sound of activity in the market place is increasing. And deal flow is starting to make some louder noise as well.
As you will read in the article about the increase in sales of distressed properties (click here), a recent increase in sales volume, most notably in the “major” markets, is definitely a sign that the commercial real estate market is finally healing. What we have been witnessing on our team for a few months now is indicative of the broader market. Activity is definitely increasing. Transactions are soon to follow. Of our many listings, a handful is with special servicers. Even non-distressed sellers, recognizing that qualified buyers are still able to access low interest rate loans, are releasing more product to the market. As more transactions occur, a basis for buyers and sellers alike will again be established, which should help to continue the movement.
Here’s to a summer full of some sweet sounds from the IPod and the commercial real estate market alike!