Starboard Commercial Real Estate

Alex Popov | October 20, 2005

(1906 San Francisco Earthquake and Fire)

Earthquakes, Interest Rates, terrorism, Chinese Yuan... external events can dramatically impact real estate market cycles. The "froth" as the Fed would say is getting a bit rich in the current market for SF commercial real estate. I'm seeing prices that defy basic financial fundamentals. I'm also seeing Negative leverage on investment properties and high multiples on "owner / user" (businesses that buy a property and use it to operate their business) since credit is readily available for profitable businesses. I'm not certain what event will trigger the correction, hopefully not a shaker like in 1906. But fundamentally, I believe prices are unsustainable, so be "Smart Money" this time- Sell before '06...

Posted by: Alex Popov Commercial Sales and Leasing Specialist
Office: (415) 477-8474
Cell: (415) 269-1849
Posted 14 years, 4 months ago on October 20, 2005
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