Commercial Real Estate Analysts Say ‘Delay and Pray’ Strategy is Not Viable

A meeting convened recently at the McDonough School of Business of Georgetown University where some of the biggest names in commercial real estate discussed the state of the industry. Commercial real estate in the U.S. is currently mired in its worst funk since the Great Depression, and in the two years since the credit bubble burst, prices have plunged an average of 40 percent. Industry analysts say that a perfect storm of depressed property values, tight lending practices and the Great Recession has paralyzed the country’s commercial real estate market. Prices are down an average of 40 percent across the country, putting additional pressure on reluctant lenders to tighten lending standards further. Analysts say that since no one really knows what commercial real estate is worth at the moment, obtaining lines of credit could get even tougher for the foreseeable future. The analysts said that outside of a few high profile, “can’t miss” commercial developments in New York and Washington that have begun recently, little else is happening. They say that everyone is in a holding pattern, waiting for a magical rebound that isn’t likely to happen. They also said that the prevailing “delay and pray” strategy that the industry is pursuing is counterproductive and will only extend the status quo and could make it worse. There is no doubt that the economic downturn has affected the prices of Louisville commercial real estate. However, conditions here are not nearly as bad as most markets, which makes now an excellent time to sell and buy commercial real estate in Louisville. If you’re an owner looking for a buyer or a buyer seeking your next opportunity, contact the commercial real estate experts at Louisville Properties today. Give us a call at 502.744.9504 and put our experience and resources to work for you!

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James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

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louisvilleproperties

Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

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