(Read more on the debt and equity markets.)

ALEXANDRIA, VA-Delta Associates’ report on the impact the credit crunch is having the real estate industry quantifies both positive and negative developments that are unfolding in the CRE industry. For instance, the multifamily space appears to be benefiting from the credit crunch woes. “Some of our buying clients report a 15-to-40 basis-point increase in cap rates for good product at strong locations; others a 25-to-75 basis-point increase for weaker product at lesser locations,” it reported.

On the other hand, the national office market is being adversely affected by the problems in the credit markets, it found, advising readers to watch submarkets in metro areas that are highly dependent on the homebuilding and home mortgage industries. This could include submarkets in Orange County, CA; Phoenix; and Denver, to name a few.

The Washington, DC area, though, can count itself lucky, Gregory H. Leisch, CEO of Delta Associates tells GlobeSt.com. “We are blessed here in Washington with a recession resistant marketplace, which has to do with our core industries.” Home building and home mortgages, he points out, are only a tiny part of the local economy.

For CRE investment sales that means there is still plenty of money available for deals and plenty of deals still in the market, he says. “All cash buyers are still very active, for example.”

This is not the say there won’t be a slowdown from the “torrid” pace of the last three years, he adds. “But activity is not going to screech to a halt.”

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