Here is some more news on the continuing strength of income producing properties. The residential mess that everyone is talking about has had little impact on commercial brokerage.
For buyers and sellers alike the market remains strong, though there is some weakness appearing in retail properties. Those banks that are having problems have lumped their residential development lending packages in with their commercial loan programs. Which give a very skewed view of the market.
Lenders agree while there is some slight weakening, there has been no significant or a concerning amount of tangible deterioration on the part of custumers. Cash flows are still there andmost lenders have few concerns. Why? Because income producing properties produce just that -- income.
That is in contract to single family homes used as our primary residences. They aren't the same as income properties, unless someone is being charged rent.
For the full story, click here.