Comments on: Nonresidential Building Sinks: Fears Banks Will Cut Back Loans For Nonresidential Projects http://www.biggerpockets.com/renewsblog/2008/09/03/nonresidential-building-sinks-fears-banks-will-cut-back-loans-for-nonresidential-projects/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Mike Taylor in Indianapolishttp://www.biggerpockets.com/renewsblog/2008/09/03/nonresidential-building-sinks-fears-banks-will-cut-back-loans-for-nonresidential-projects/#comment-59774 Mike Taylor in Indianapolis Wed, 03 Sep 2008 15:19:03 +0000 http://www.biggerpockets.com/renewsblog/?p=1281#comment-59774 "In a soft economy there are fewer tenants."Yes, but with current credit crunch in residential isn't that making more renters that would have typically been owners in the past? “In a soft economy there are fewer tenants.”

Yes, but with current credit crunch in residential isn’t that making more renters that would have typically been owners in the past?

]]> By: John Coreyhttp://www.biggerpockets.com/renewsblog/2008/09/03/nonresidential-building-sinks-fears-banks-will-cut-back-loans-for-nonresidential-projects/#comment-59769 John Corey Wed, 03 Sep 2008 12:46:51 +0000 http://www.biggerpockets.com/renewsblog/?p=1281#comment-59769 Part of the issue is the fact that commercial property is valued based on the income and the yield. In a soft economy there are fewer tenants. With higher inflation you can expect higher yields so lower building values. Little competition in the credit market implies lenders can be more picky when evaluating loan deals. Part of the issue is the fact that commercial property is valued based on the income and the yield. In a soft economy there are fewer tenants. With higher inflation you can expect higher yields so lower building values. Little competition in the credit market implies lenders can be more picky when evaluating loan deals.

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