Commercial Real Estate Slump Possible in 2009
One of the nation’s leading investment fund managers, Blumberg Capital Partners, said research by their commercial real estate staff suggests significant price erosion of as much as 15% this year, across many markets and 20% in 2009.
Philip Blumberg, Chairman and CEO of Blumberg Capital Partners said: “A number of commercial property investors who bought since 2005 are now finding that they overpaid and are overleveraged, with few avenues to refinance. Unfortunately, too many of those buyers had unrealistic expectations: the economy would continue growing unabated, capital flows would remain at unrealistic levels, pricing of commercial office buildings would continue growing, new buyers would continue emerging and credit would always be plentiful.” san diego commercial real estate