News
Experts: Too Much Capital, Too Few Deals
April 14, 2016
Flickr/ Flazingo Photos, 401(K) 2012
Even though the current real estate cycle could be coming to an end, there's no end in sight when it comes to available capital.
“It’s a market that’s continued to be plagued by too much capital chasing too few deals,” CGA Capital Kyle Gore tells GlobeSt.
There are problems with commercial mortgage-backed securities—issues that are starting to trickle down into the rest of the market.
"Nearly $200B of loans are coming due by the end of 2017 and they either need to be resold or refinanced," Ralph Cram, president of Envoy NNN, says.
And in an environment likes this, tenants are the real winners, Gore Says. Tenants are now able to pick 15-year leases instead of a typical 20- or 25-year lease—terms they could never get in a different market. [GS]
