Elliott Associates Takes to the Pages of the Portland Business Journal

Retail Space Goes Empty

In an edition of this month’s Portland Business Journal, Lou Elliott took to the horn to discuss the hurdles created by the current underpriced leasing market, maturing mortgages, faltering consumer confidence and the prospect that more retailers will go out of business.

In the article, Elliott predicts the pain for owners may not be over. The problem is especially acute for owners with expiring mortgages. Reduced rents lead to lower property values, which in turn erode owner equity. That, coupled with lenders demanding higher equity levels from borrowers means property owners will need significant amounts of cash if they wish to refinance.

With the cash crunch looming, Elliott counsels his clients to conserve funds. “You’re going to need it,” he says.

Elliott also counsels owners to work with tenants to keep them in business, if they have a viable business. “Do what you have to to keep them,” he says.

To read this article in this entirety, find it here.

portland.bizjournals.com/portland/stories/2010/07/12/focus1.html