Vanguard Commercial Group

It may be hard to imagine at this point, three and a half years into an economic downturn, but at some point the available commecial space will lease up and rents will rise. I suppose that is the way of all real estate cycles, however, there are some differences this time around.

Because of the financing crunch it is very difficult for investors in CRE to purchase properties. Only the strongest investors, be they institutions or private groups with capital, can get financing for income producing properties. Even then, lenders are often requiring large equity stakes, in the 35 – 40% range. If things keep moving, albeit slowly, in the right direction we would expect lending to loosen up in the next 12 – 18 months.

What does this have to do with space for Tenants? Well, if lending on… Continue reading →