Investors are more fearful and not taking as many chances

Financing has shifted back to the old ways with tons of documentation and more equity needed in the project

Financing is harder to find

Cap rates have gone up and deals are being re-negotiated while already in escrow

Rental rates are down, vacancy rates are up with more concessions being given on shorter terms; thus lowering the overall value of the real estate

Landlords are leasing more to start up companies or companies with questionable credit.

There are many cottage industries popping up and inquiring about space.

Tenants are renewing at rates lower than their existing rate and for shorter terms

Landlords are finding it harder to get lease terms approved by their Lenders, because the proposed deals are under their pro-forma assumptions

Owners have slashed their marketing budgets, but really should be investing in marketing now more than ever. There are fewer people advertising, so you stand out more and get more “bang for your buck”

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Filed under: September 2009

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