Tough '09 Is Seen for Commercial Real Estate
The Washington Post reports: This year will be among the worst for the US commercial real estate
industry, as unemployment leads to a drop of as much as 30 percent in
rents in some places and more office towers from Washington to Chicago
and Los Angeles sit empty, according to several research reports from
commercial real estate service companies.
Roughly 107 billion dollars worth of hotels, office buildings and shopping centers are in trouble, ranging from mortgage delinquency to foreclosure, according to a report from Real Capital Analytics.
"It's not going to be a good 2009," said Dan Fasulo, managing director
at Real Capital. "We're at the point where a normal, functioning market
doesn't exist. Buyers are there, but they don't necessarily want to
make an acquisition. Pile on top of everything that we don't have a
functioning debt market. It creates paralysis in the market."
View the full article on The Washington Post: Tough '09 Is Seen for Commercial Real Estate
Posted by: Matthew Stone