Weakness spreading into CRE?

David Bodamer is on the spot again, citing reports today about declining commerical prices in some indicies. David also has a report in his post from the NAR convention in Las Vegas that, per NAR's chief economist, low cap rates are spooking some investors.

Uhhh....Lawrence Yun is spot on. It is almost the duh of the year. Why buy at a 5 or 6 cap when you can get CD returns at nearly that rate? It is hardly worth the risk! Give me some nice juicy 20+ IRRs and I'm all over it. The declining prices will bring caps back up to where they, in my humble opinion, belong.

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