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ReFla asked members of its editorial advisory board what issues they thought are having the biggest impact on commercial real estate now. This is the first of three thought-provoking responses.

Two things will dramatically affect our business this year. The first is the limited availability and increased cost of credit, which will greatly reduce the number of deals that get done this year.

The second will be the huge increase in sublease space brought on by the significant reduction in activity that most businesses will experience. This will result in a significant reduction in rental rates going forward for the next few quarters.

That should cause a significant drop in sales prices of investment properties.

Ted Bywater is chairman of the Bywater Co.

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