Signs of Denial Waning in Commercial Real Estate in Los Angeles?

Received this great graph from LoopNet on office prices per square footage in Los Angeles area. Is denial about value starting to turn?

Let's hope so. The markets will never recover unless everyone is willing to take some sort of hit. Lenders need to loosen criteria, sellers need to be realistic about prices and everyone needs to realize that there will be no deal flow till the deals make sense.

We can no longer swing at the fences on deals. Slow and steady will win this race.

Click on the graph for more data:

Chart

JW Najarian

CRE Distressed Assets Association

CRE Professional Investor Group

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Comment by JW Najarian on May 21, 2010 at 1:53pm
I would add that usually the bottoming of rents can show a clear sign that we have hit the bottom and as rents stabilize or go up you can usually count on a market shift. In the current market, however I would watch this closely.

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