1 in 5 Sales of Shopping Centers Now Are Distressed Properties
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One in five recent retail property sales were distressed—but supply is being snapped up quickly by value seekers and is spilling over into non-distressed properties with buyers seeking institutional grade quality.
Lending has returned to high-quality assets (indicating lenders are comfortable that prices have bottomed) and that’s good news.
In an article earlier this week, it noted that Real Capital Analytics reported total commercial real estate sales in the first half of 2010 of $34.2 billion. Although this level is just 26 percent of the average since 2004, it portends a recovery given the miniscule $54.4 billion of total commercial real estate sales in all of 2009.
In no way does this mean that sellers are getting all of their investments back in all circumstances, but it does indicate that we no longer are bouncing on the bottom.
This is a really good article to read. Pent-Up Capital Generates ‘Ferocious’ Competition for Core, Distressed Shopping Centers- CoStar