There are several cash rich funds willing to pay top prices for a prime deal (building + structure) but anything less than prime forces a major discount. Oasis, in Prague, is somewhere in the middle between prime and secondary, in the minds of most institutional people.
There are a couple prime deals (off-market) that are being discussed below a 7 percent yield and also a handful of other deals that might be at the 8.5 to 10 percent level but are in no way prime property or structure.
The market has become very much divergent and the risk avoidance mentality will push prime yields back down a little after the crisis-fueled over-correction. For the risk takers there are very sweet cash flow deals out there but they require serious courage and a healthy amount of equity on hand.
Brent Watkins (Partner, Private Property)