How low will they go?

Here's an interesting post from The Bloodhound Blog, the gist of which is that, because of the increase in PE fundraising, and because there are megadeals to be had, pressure is moving down into even smaller commercial deals as those funds try to snap up even small deals.

I think this is true to the extent that this means still more market pressure because of still more money chasing deals. But I've represented some fairly sophisticated clients, including opportunistic investors and PE funds, in deals like this for years. Don't think this is a "new" niche, at least for the smarter real estate investors, as the IRRs on these smaller deals have often been nothing short of phenomenal, something you may not always see in the megadeals.