This article in today’s Wichita Eagle says that commercial real estate deals are down 30 – 40% in Wichita. A big reason for the slump is the changes in loan requirements. In general, loans are harder to get and require a larger down payment. Qualified buyers are certainly at an advantage right now in Wichita.
excerpt from the article:
Local commercial brokers say sales activity is off 30 to 40 percent this year, far ahead of the 10 percent national pace in this month’s National Association of Realtors Commercial Member Profile, which measures sales volumes from 2006 through 2008.
“It’s pretty stagnant right now,” said Gary Schmitt, who oversees residential and commercial lending at Wichita’s Intrust Bank.
Locally, commercial business has slowed to a trickle. Deals are getting done, but they’re with big down payments and spotless credit histories.
“We’re figuring 30 to 40 percent down in sales transactions,” said Marlin Penner, president of NAI John T. Arnold Associates. “And financing is the big reason.”
