Thursday, January 8, 2009
Some commercial REITs are yielding 8-9% and have been trumpeted by TV talking heads as good investments compared to retail REITs. I recall that some of these entities have debt maturing in the coming weeks. With the announcement of retail sales and a downgraded outlook from Wal-Mart, market eyes are focused on retail. However, what about the commercial sector? In my market, there are great deals on nice office space outside of the four block downtown Minneapolis golden rectangle. These deals have been in place for a while. If and how these refis get done will give another important observation about credit market confidence.