If You Wait Too Long To Jump In The Water, The Sharks Will Be Waiting For You!

What happens when a bunch of chum (commercial real estate investors) drops into shark infested waters (the marketplace) before you jump in? If you wait just a bit, when you hit the water, the sharks will be waiting for you. The commercial real estate market is nearing the bottom and those who jump in now will be able to eat the late arrivals alive!

UK CRE bottoming: Reuters article

"The strong appetite for prime assets appears to have broadened out sufficiently to allow a stabilisation and improvement in the wider market," Wylie said in a statement.

"Although concerns remain over the near-term prospects for secondary assets with weaker covenants, this month's figures seem to confirm that investors have awoken to what is now widely being seen as a once in a generation buying opportunity."
NA CRE close enough: CPNOnline article
For the most part, the investment community has been holding back on commercial real estate acquisitions, waiting and waiting for the market to hit bottom. But according to a new report by CB Richard Ellis Investors, while the bottom may not be at hand just yet, it's close enough.

So, now really is the time to buy; holding out for rock bottom may very well result in lost opportunities. "There's been so much focus on the downside, particularly over the last year, and there's been good reason to be mindful about buying properties," he said. "But much of the downturn has passed and much of the re-pricing has happened. You can still be in defensive mode, but you can buy properties on that basis. In the market now, there are more attractive opportunities, so you don't need to be an aggressive buyer to take advantage of those opportunities."
Before you start writing nasty comments about the lack of funding for your projects, let me interject. I get it that money is tougher to get these days. I get it that investors are under a brighter light right now and it really is difficult to get financing for some deals.

That bears repeating: some deals.

There are a lot of really good deals out there right now, you just need to know how to find them. Financing can still be found too, you just need to look a little harder. In my daily business, I'm starting to get a lot of calls from investors and developers interested in cautiously getting back into the market as well as mortgage brokers looking to place money. It's still who you know that will see you through these uncertain times.

Seize opportunities when they arise or you might just get eaten by the sharks.


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