Wednesday, August 22, 2007

More on high-priced properties

As a follow up to my cap rate post, here is a story in the Journal stating that even some landlords in London and New York are a little scared, presumably because some bought buildings at a high price under the aggressive expectation that rents would continue to rise at astronomical rates. If the financial services sector declines and hedge funds go under, then all bets could be off, even in markets where you'd normally think you'd be safe. Once again, it's all in the numbers.