80s Turbulent for Commercial Real Estate

By Austin, James E. | THE JOURNAL RECORD, December 29, 1989 | Go to article overview
Save to active project

80s Turbulent for Commercial Real Estate


Austin, James E., THE JOURNAL RECORD


The decade of the 1980s has been as turbulent a time as possible for owners of commercial real estate in Oklahoma City. It was a decade where every possible senario for an owner of commercial property was experienced.

The early '80s saw a time of fantastic growth and total optimism. For the entrepreneur who wanted an alterntive to oil and gas, commercial real estate was the logical choice.

There was a great demand for all types of properties and funding for the projects was readily available. As the lenders competed for the right to make loans, it was not unusual to be able to get 100 percent financing on very speculative projects.

The mid-80s was a time when these local entrepreneurs were doing everything they could to salvage their ownership position in their projects. As the income stream plummeted, it was not unusual for the revenues generated from the property to not even be sufficient to handle operating expenses, let alone service debt.

By 1987, many projects had gone back to the lenders. After the lender gained title to the property, they felt the property was worth approximately what they lent against it - only to price the property on current income within 18 months when they realized that this was not the case.

In 1989, we saw numerous sales of all types of commercial properties, in many cases to local investors, for much less than replacement costs.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

80s Turbulent for Commercial Real Estate
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?