Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (24289)	10/5/2004 9:17:33 PM
From: Les H	Read Replies (1) \| Respond to of 306849

NEW YORK CITY-Record building prices will come back to haunt the industry. That's the word from a couple of investors who say that record low cap rates and interest rates can't last forever. One even went so far as to say we're about to see some of the worst deals in the industry's history. "People are signing off certain assumptions because they have to move capital," says Larry Wyman, co-chairman of locally based HRO Asset Management. "But those assumptions are completely disconnected to the fundamentals of the assets and the history of the markets. On a national basis, we're seeing record pricing on a square-foot basis for properties that in many cases are in markets where the net rental fundamentals have only declined over the past 10 or 20 years." globest.com