Leasing signs stay around for a long time. Pennants and flags are pulled out of storage and are used to advertise space. Small inducements begin to be offered for leasing space. Physical vacancy rates increase. Guarantees are used to justify income, expenses, and capitalization rates for properties being sold.
Replacement costs become a reason to buy.
Gross rent multipliers are used when cash flow doesn't work. Ads for personnel for real estate companies begin to decline in the classified sections of newspapers. Ads for rental space increase in the classified sections of newspapers. Ads for property sales decline in the classified sections of newspapers. Typically, concessions lower the net operating income of the real estate, which in turn lowers the value.