Commercial Real Estate – Up or Down?
How should you play the real estate market. I was wrong on the consumer side (wrong about the market view at least). I dumped my shares in Beazer (BZH), it dipped significantly after that and then went on a tear which continues.
The noise in the commercial real estate market has been loud. and can be summed up in the paragraph below. The amount of chatter that I am hearing about this market is similar (not quite as loud) to the residential mortgage market prior to the break down.
The rising tide of the market is bringing up all ships. The funny thing about that is that the rising stock prices should help those companies that might otherwise have a difficult time raising capital.
…the Commercial Real Estate market faces a double-whammy of falling prices and reduced availability of debt, but the use of numbers in this short one sentence elegantly and succinctly captures the essence of the problem. A simple example will help explain.
via Commercial Real Estate – Make Up Your Own Mind — Seeking Alpha.
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