Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The spread between the prime rate and industrial cap rates has turned negative, a historical marker of an approaching recession. A new report from NAI Capital shows that these spreads are just beginning to turn negative. The last time this happened was in 2005, and the spreads stayed negative until mid 2008. The spreads also turned negative in 2000, before the Dot Com Bust of 2001, and in 1989 before the 1990 recession.

“Historically, we are due for a downturn. Now, more and more or the signals are starting to point toward a downturn of some kind, but how drastic it is going to be and how sharp it is going to be is anyone’s guess,” Brent Avis of NAI Capital’s investment services group, tells GlobeSt.com. “I don’t think that there is anyone that is educated in finance globally, nationally or hyper locally that doesn’t see something coming.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

More from this author

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.