Commercial real estate’s proverbial “shoe drop” probably won’t happen

REITs have capitalized themselves this year as debt and credit markets have reopened, Alex Goldfarb, REIT analyst at Sandler O’Neill, told CNBC. Sliding rents will depress earnings for 2010, but beyond that, investors can expect growth, he said. Goldfarb added that while there will be “a bit of pain” in commercial real estate’s near future, “the system right now is set up to try to work through the problem.” Harvey Green, CEO at Marcus & Millichap Real Estate Investment Services, agreed. “I don’t think we’re going to have that shoe drop that we’ve all talked about,” he said.