Empty Office Space
Portfolio.com reports: The world of commercial real estate is not a pretty picture.
On Monday, downtown Los Angeles’ largest landlord, Maguire Properties, turned in to creditors the keys to seven Orange County, California, buildings with $1.06 billion in debt. In Harris County, Texas, 335 commercial properties in the Houston area were posted for foreclosure in May, June, and July, an increase of 84 percent over the last year. And in Washington, the collapse of the commercial real estate market is causing headaches for Fed chairman Ben Bernanke.
“Just to give you the scope, in the U.S. alone, we have accounted for over $115 billion in commercial property assets that are troubled,” either in default, foreclosure, or bankruptcy, says Peter Slatin of Real Capital Analytics. “So how does that affect the overall economy? I think in a big way.”
The trauma in the commercial real estate market—pain brought about by debt and exacerbated by tenant vacancies—contrasts with a slowly reemerging residential real estate market.
View the full article on Portfolio.com: Empty Office Space
Posted by: Nina Turner