Woodland Hills, CA (PRWEB) March 14, 2009
Although the focus has been on the residential genuine estate crisis, the commercial real estate sector is facing a significant crisis as effectively, say professionals. Gil Priel, Co-Founder of the Peak Corporate Network (PCN) predicts that declines in industrial values would be the next shock to the monetary technique. Priel stated that, “I anticipate cap rates will rise 2-3 points as an average, with the best quality bargains reaching 8 caps and perhaps higher.”

Eli Tene, PCN’s Co-Founder and a major loss mitigation specialist, projects “a full disaster” in industrial real estate industry, “with at least a 20 % price tag drop in 2009, and in some regions considerably much more”. Tene stated that the industrial genuine estate industry faces a monetary drought with “nearly no new constructions loans and no land obtain loans will be originated.”

Raffi Tal, COO, of I Short Sale, Inc., a top loss-mitigation advisory firm reported on a considerable enhance in demand for commercial quick sale: “We have noticed an increase of 80 percent in commercial brief sale inquiries in California. Some of the inquiries included land, a hotel, a shopping center, retailers, and even a bowling alley.”

The 3 professionals join others in observing a tremendous vacancy development in all places — retail, industrial and apartment buildings. Adding to the challenging instances are liquidity issues that make it difficult to get funding from banks for acquiring or refinancing the inventory.

When asked, none of the professionals agreed to point on a recovery timeline. “This time we are going to see a long term recovery”, stated Priel, “the hope to see a alter of course in the economy by the finish of 2009 is a little too optimistic in my opinion”.

The Peak Corporate Network (http://www.peakfp.com) is a platform of firms founded or acquired by principals, Gil Priel and Eli Tene. The want to offer you the ideal “1 stop” full network of real estate services is the driving force behind the formation of these organizations.

I Short Sale, Inc. (http://www.ishortsale.com) is a major nationwide short sale, modification and loss-mitigation advisory firm. Since 1991, it has assisted, through its principals, thousands of home owners to avoid foreclosure. The business has developed a far-reaching network of home owners, mortgage businesses, banks and realtors.

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