Do you remember where you were when the space shuttle shattered and plummeted to earth?

I do. I was on the way to lunch at the college cafeteria. I’ll never forget the horrifying images as the shuttle exploded a minute after takeoff, sending a shower of smoke, steel and bodies in a hundred directions.

The tide has gone out. Have you noticed? Did you hear about what’s going on? So apparently someone in Wuhan, China ate a bat or something...

OK enough joking around. Seriously, commercial real estate is facing a day of reckoning. A day we knew was coming. We have been warning everyone who would listen on BiggerPockets and on podcasts, etc., since 2017.

An experienced residential real estate investor called me the other day. He was a bit new to commercial real estate and he had a question:

“I thought I heard you say that a lower cap rate means a higher price. Did I hear you right? What do you mean?”

Depreciation Schedules. IRS codes. Accounting. Paperwork. The very thought of these concepts is enough to put me to sleep at my desk. Well, they used to be.