Sam Zell on CNBC today said he did not expect the commercial real estate market to turn down the way the residential market has. Zell said with a few exceptions commercial loans were not made with small downs and inadequate documentation the way single family home loans were made.
Sam said that with regards to commercial real estate we are just going into a cyclical downturn. He said that in his experience, we have never gone into a cyclical down turn with less overhanging inventories. Because of this , he expects the downturn to be short lived.