• Where is this market headed?
Where is this market headed? Who can tell? One thing is for sure, the market is being reset as we speak. After a 24 month hiatus, banks have started to foreclose again on warehouses. Just yesterday (9/8/2011), I toured three buildings that had been foreclosed on. In my 15 year career, that was a first. However, I actually see that as a sign of market recovery. My speculation is that the reason the banks were not foreclosing before was that they did not want to carry the assets. It was cheaper operationally just to carry the non performing loans. However, now businesses are more flush with cash and as a result the banks are flush with cash in their hands making the timing right to foreclose. Now banks can afford to hire more people to foreclose and dispose of these assets. Also, I get the underlying feeling that banks feel the market is getting better for the most part and the loans that are non-performing are never coming back.