It is not that I am reluctant to be completely transparent with a client. That is the easy part. The difficulty lies in communicating to commercial property investors that they may be facing a new commercial reality.
Our new commercial reality contains several characteristics that make buying and selling, leasing and landlording and other forms of investment more precarious than perhaps in times past.
Heads I Win Tails You Lose
Commercial real estate values are tipping and for some investors it doesn’t matter what side of the coin comes up.
In a majority of major commercial markets commercial property is softening and for those who purchased in 2005-2007, things may be less than stellar. This is also true of commercial real estate markets like Prescott, Arizona.
Owners who purchased in the 2005-07 framework invested at the top of the market…they bought high.
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