This week’s perspective is provided by Jim O’Connell:
HERE’S WHAT I THINK…….
The world of commercial real estate seems to be becoming increasingly numb to the positive news that swirls around it. I don’t know why but buyers, sellers, lenders and everyone in between seems to be unimpressed by reporting that has to do with mostly good news. This week alone I saw several articles about recent improvements in economic data, the status of continuing historically low interest rates, projections of dropping vacancies in commercial space or increasing rental rates in many sectors and markets.
A small sample of any of that good news on any one of the topics just mentioned would have received great welcome a couple of years ago but now I don’t see much reaction to those positive reports, and certainly not a substantial increase in investment sale deal flow looking to take advantage of the positive current conditions. There is more activity now than we’ve seen in the last four plus years, but not at the level I would have expected.
Now don’t get me wrong, I’m thrilled about all of this mostly positive news we’re getting for most markets and sectors. I’m just wondering how long it’s going to last and when the momentum starts to shift and interest rates start going up and/or other metrics start to go back the other way as happens in all cycles, if investors are going to say, “Wow, we really missed an opportunity”.
AND THAT’S WHAT I THINK, WHAT DO YOU THINK? Click here to email me your thoughts!