SI
SI
discoversearch

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 : SiliconInvestor All Stars Forum -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (1215)8/9/2007 2:41:48 PM
From: John VosillaRespond to of 1718
 
'..collapse of cap rates.

They were 400-500 basis points over risk-free in 2000. Today, barely 100.'

That is huge. Any wrinkle in the goldilocks 10 year discounted cash flow models used to substantiate these deals will have commercial RE crashing too.. If we have some combination of higher rates, higher risk spreads above the risk free rate, higher vacancies and declining market rents it will be very bad..



To: SouthFloridaGuy who wrote (1215)8/12/2007 10:58:29 AM
From: MulhollandDriveRespond to of 1718
 
LIG, do you have a link for that? i would like to read the article

les h. posted this the other day, it's on canadian commercial RE, but as we know, cap rates have been at historic lows in the US as well

canada.com


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News