Can good values still be found in the industrial real estate market?
There is very little on the market as far as investment real estate. However, off-market deals from owners who find themselves in must-sell situations are increasing in numbers each day. Conversely, there are a lot of great lease deals. If tenants are looking to renew, they’ll find great concessions. Because landlords don’t want vacancies, they are being very accommodating, especially with shorter terms, while still asking for market rental rates. This is not the time to have empty buildings. What kind of terms are banks offering nowadays if any at all? ‘If any at all’ is the key. Most big lenders have completely shut down most of their lending even to AAA-type borrowers until the beginning of ’09. There’s simply too much risk involved. Lending sources are offering 60 percent debt with 40 percent equity or 70-30 if the lender is 100 percent confident in the borrower’s ability to repay the loan. Though we are starting to see more defaults, it’s nothing like the housing market. Largely,
