Commercial Real Estate Lending Is Back

by CM

in Planning & Zoning,real estate market

Many feel that the commercial real estate market will recover before residential – primarily because of the severity of the housing market’s problems – not due to any saving grace of the commercial sector.  And this recent Reuters article is the latest in a string of good news I have been hearing to add weight to this belief.



http://www.reuters.com/article/bondsNews/idUSN1430571420090814



The sooner money becomes more accessible, the sooner more transactions can occur.  More transactions mean more points of reference for investors and more confidence in the valuation of properties and real estate.



And in fact, I am hearing from developers who feel the time to capitalize on this opportunity is near.



It can take 2 and 3 years for any significant  real estate development project to go from land acquisition to completed sellable product.  Developers understand this long lead time and are looking for signs of turnarounds not just in their local areas but in any part of the US.  The rationale is that even if their local market is slow to bounce back, 2 or 3 years will provide ample time to “catch up” to the leading areas of the country.



So a green light in California, may be all that is needed to spur development in other parts of the U.S. as well.





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