Where do we go from here?

The answer to that questions is, I believe, right back to basics!


I'm of the opinion that the "past" holds the key to the future. History of nations, countries and yes, even industries, have a way of repeating themselves over and over.

It's no big secret that the commercial real estate business is paralyzed, frozen or locked in it's place because of the lack of financial liquidity.


This isn't going to change overnight. It's going to take some time like it or not.

In my opinion, after some 35+ years in this business, I don't think we will see to return of the boom days for a long time.

The market needs to return to "sanity." The outrageously high sales and leases prices must be replaced with affordable values.

Buyers, investors, speculators for the past ten years just grossly overpaid for many assets.

To cure the system will require time, a retreat from owners-denial of the actual market conditions and a strong economy.

Today most commercial inventory, in this area of Massachusetts, simply isn't moving. Owners are getting panicky, bankers nervous, brokers and agents desperate.

We'll witness a major purge, or correction, in all aspects of the industry. It isn't going to be pretty. But then again from what I read, and have heard, the 1930's weren't pretty either

After WWII cities failed as suburban areas grew and grew giving birth to retail,office, industrial and R&D developments that clusted along it's highway.
Today it's the suburban locations being hard hit.

Sales and lease activities will return slowly and normally.

No one can rush the market. This has always been a given: basic!

One very interesting sale just occurred, not around here, but in Millsboro, Delware.

The Bayshore Plaza, consisting of 38,744 square foot shopping center, was recently sold ( 8-14-09) for $8.2 million or $208.84 per square foot.( And the indicated capitalization rate of 9.1 on it's current income.

One sale isn't a market but it's a sale. Yes, some commercial property, here and there, will continue to sell and at the right price.

And yes, patience, has laways been a basic fundamental of the business

Bill McInerney