There is much talk about the coming crash in the commercial real estate arena.
Investors are lining up and waiting for great deals to happen. Yet there is a "disconnect" between the lenders/note holders and the investors.
The true value of the property today will be based on the cash flow generated as well as the perceived value in the eye of the buyer...whether the value is in the cash flow, location and quality of the property or all of these factors.
What a Buyer feels that the property is worth in today's market...or even the value they feel it will be worth in 3 or 6 months is not the value the bank is holding on their books...most of them have values that were based on the high, speculative prices from the peak of the market.
Cash is king and there are a lot of buyers waiting to purchase. It will be interesting to see how the market aligns itself.
