Have CRE Prices Bottomed?
I just came across this article in which Mike Kirby, Director of Research at Green Street Advisors claims that CRE values may not drop any further than they already have.
My head is spinning now. I don’t know what to think anymore. Its almost as if everyone is entitled to their own opinion.
Maybe CAP rates are headed down. Actually, not.
I have to agree with Mr. Kirby, especially when he says, REIT executives “who wait for distress [to make acquisitions] may not find it." While everyone waits for some ethereal bottom (that I think is already here) they are paying an enormous opportunity cost by NOT investing now. Lost revenue on solid assets today in exchange for a possibility of further price reductions down the road can add up in a hurry.
Time will tell, I guess.