Reality Bites
There is an article in today's Wall Street Journal that summarizes what I have seen in the Tenant In Common market since last summer. Deals are not getting done because lenders won't lend and this is expected to result in lower commercial real estate prices. Pardon, the pun, but it does not appear that the ground floor has been found where lenders will lend and buyers and sellers can come to terms. Until this happens deal flow will be light. It is ironic that the Blackstone / EOP deal early in 2007 appears to be the catalyst. Blackstone paid so much and then sold portions of the EOP portfolio for even more that it help spook lenders.