(Read more on the debt and equitymarkets.)
ALEXANDRIA, VA-Delta Associates' report on the impact the creditcrunch is having the real estate industry quantifies both positiveand negative developments that are unfolding in the CRE industry.For instance, the multifamily space appears to be benefiting fromthe credit crunch woes. "Some of our buying clients report a15-to-40 basis-point increase in cap rates for good product atstrong locations; others a 25-to-75 basis-point increase for weakerproduct at lesser locations," it reported.
On the other hand, the national office market is being adverselyaffected by the problems in the credit markets, it found, advisingreaders to watch submarkets in metro areas that are highlydependent on the homebuilding and home mortgage industries. Thiscould include submarkets in Orange County, CA; Phoenix; and Denver,to name a few.
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