End May Be In Sight for Depressed Investment Sales Market

According to brokerage firm Grubb & Ellis, as more commercial real estate loans expire in 2009 and property fundamentals deteriorate, the volume of asset sales is expected to increase, particularly during the second half of 2009. Many borrowers have commercial real estate loans that will expire in 2009 (approx. $36 billion), and if financing on acceptable terms is not available the assets will likely have to be sold.

In the first 3 quarters of 2008, transaction volume for office, industrial, retail and multi-family properties is down 67% compared to the first 3 quarters of 2007. (stats from Real Capital Analytics) However, in the latter half of 2009, with commercial real estate prices continuing to fall along with the expiration of real estate loans in 2009, Grubb & Ellis expects the transaction volume to increase next year by as much as 15%.

For more information, click here for read an article published on National Real Estate Investor online by Poonkulali Thangavelu.

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