Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The capital markets are certainly in a much different state than they were just a few months ago, and conditions continue to change. The editors of Real Estate Forum asked readers to participate in a survey to get a ground-level sense of the current state of the debt and equity financing arenas. More than 300 executives from across the commercial real estate spectrum participated in the study, which was anonymous. Many of the responses were expected, but some were actually surprising.  Nearly half (47%) of those polled believe property prices have increased somewhat over the past 12 months. Another 20% said prices have remained the same and 18.3% believe they’ve decreased somewhat. Of course, it all depends on the property; most respondents said trophy assets in core markets are seeing upticks, whereas values for B and C assets in secondary cities have remained the same or decreased slightly.  Still, a majority of participants (37.3%) stated that today’s property pricing is fair. Another 33.9% characterized values as inflated, while 28.8% reported depressed pricing. “Artificially low rates and ‘dumb’ money are driving values up to levels that are not sustainable,” said one executive, while another noted, “Too many commercial realtors are still using 2006 pricing combined with unrealistic cap rates—made up, in other words—to market properties.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.