Jim Delaney, who has a Wall Street focused blog  has an interesting quote from Cushman & Wakefield Co-Chairman Bruce Mosler: ““So much capital is on the sidelines now, lacking product. A lot of real estate is owned by the banks or in CMBS, and as banks’ balance sheets improve they’ll put the product back on the market. Sometime in the latter half of 2010, we’ll see the investment sales market adjust. Owners who can leave a lot of equity in the property – REITS, foreign buyers, institutions – will dominate the new ownership landscape.”

I agree with Bruce that equity is king and this will change alot of the fundamentals for landlords. They will be less worried about cash flow (with low debt) and more worried about the value of their buildings. We will adjust our negotation strategy accordingly when we see these types of owners.

Ken Ashley