Great News! We're Growing!

Yesterday, we added a new Milford office, with very successful and seasoned commercial agents in it, as we  completed a merger with George J. Smith & Son Realtors.  The Smith firm, which has been in existence for 126 years, adds to the 54 years of Pearce Real Estate to give clients the benefit of a total of 180 years of company operations.

After the past several years of doing little other than cutting and closing, it's wonderful to be able to grow, and to look forward with anticipation to better tomorrows.  There are now 16 of us in the Pearce Commercial Division, a number that exceeds almost all of the other firms in Connecticut, including the national firms.  Our combined size positions us to obtain more and better listings, have broader contacts, and share valuable information from our office in Rocky Hill, our headquarters in North Haven, and our new office in Milford.

We look forward to serving you in one of our locations!

Commercial Real Estate Loans Coming Due

2012 marks the year when many, many commercial real estate loans, written at the craziest height of the market, are coming due or need adjustment.  Although there has long been talk that such an event would cause huge disruptions in the market, the economy seems to have improved enough to allay those fears somewhat.  However, there are definitely loans out there that should never have been written.

Today's New York Times cites one such loan, that made wild assumptions about the increases in NYC rents, the ability of an owner to do condo conversions, and the lack of any increases in operating costs.  Viewed through the lens of the past five years, all that comes to mind is "What were you thinking?".  But isn't that always the way the cycles go?  It does often seem that the life cycle of a banker is just slightly shorter than an economic cycle, so that we are always repeating the same mistakes.