Commercial Real Estate – Long Term Investment?

Commercial Real Estate has traditionally been a long-term investment until the mid 1990’s.  Creative financing including high loan to value (LTV) borrowing, three to five year balloons, and the quick hits of CMBS (Commercial Mortgage Backed Securities), CDO’s (Collateralized Debt Obligations), and many other financial instruments (“smoke and mirrors”) have trashed the value of commercial real estate and straddled commercial loan portfolios with hundreds of billions in debt and created a fortune in fees, commissions and points for the Wall Street crowd.

In the minds of these Wall-Street-hustlers, “nothing is really owned anyway.” If you can create enough confusion and chaos in the financial sector you can get rich.  Once they destroy one sector they take the money and run off to the next security scam.  What they have left in their wake is commercial properties loaded with piles of debt.

What does the future hold for investors in commercial real estate?  If they are in a cash position the future will be very bright.  

When the Ponzi scheme of debt on top of more debt (rehypothecation) blows up (which it will) the real commercial investors will move out of the bleachers and get on the field and pick up commercial properties for pennies on the dollar.

All I say, (from being on the front lines in the commercial arena) its time to move onto the playing field now.  Before the mad rush of money starts for the exits of the stock and bond markets.

The attempts of Wall Street to turn real estate in general into short-term-quick-hit-flip-investments have totally failed.  It has brought the economies of the world to near ruin.  The reason for this is that real estate has always been the foundation of long-term wealth.  Seventy percent of the largest fortunes in world history are based in real estate. Commercial real estate is now and always will be a long-term investment, no matter how others try to make it something else.

As a commercial real estate broker for the past sixteen years and with personal sales of over $300 million dollars I am ready to help you with any commercial real estate needs.


Bill Witter

Equity Pro Realty

Commercial Division



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