So to answer definitively the “What should I do now?” investmentquestion previously posed, I say it's time to hold with thecaveat—sell anything sketchy or past its prime. I don't think it'sa great time to buy and the always narrow development window isclosing.
Well-located core properties in the leading 24-hour markets aretoo richly priced, but they are well leased and will throw off verysolid income returns with values buoyed by consistently strongbuyer interest. Recent jobs and GDP numbers suggest tenant demandcould at least marginally strengthen, supporting modest rentgrowth. For owners, this is a sweet spot— you can sit back andcollect your monthly revenue stream, while the time is right tolock in some long-term leases.
If you sell any of these prime properties, where are you goingto find a better investment? All you are doing is making money forthe brokers, investment bankers and lawyers, who have been eggingyou on so they can get a cut of the transaction booty, and thensome if they can get you to buy something else on the rebound.
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