June 30, 2011
This week’s OBP Perspective is provided by Tom Powers:
Raising the debt ceiling. Unemployment still high. Greece and European debt issues. The Arab Spring. Not-so-favorable domestic economic news. These topics may be front page news on a daily basis but they do not seem to be deterring the capital flow into real estate – or maybe it is because of these and other looming issues that capital is flowing into real estate. With more demand than supply, pricing is becoming very aggressive for the most sought after properties. Both debt and equity are plentiful for good product with strong cash flow. The very low interest rate environment is helping to fuel this resurgence of capital and as long as interest rates remain close to their current levels, we anticipate that demand will remain strong and that we will see a considerable number of transactions being completed during the second half of the year.