Motor City's commercial property market ailing
Associated Press reports: Times are tough for US commercial property owners, but few have it worse than landlords in Detroit.
Motor City never quite recovered from the previous recession at the start of the decade only to get snagged in the current slump. And in the last 12 months, it's seen joblessness nearly double and two pillars of its economic lifeblood, General Motors and Chrysler, go on government life-support.
The ripple effect was a tidal wave: commercial real estate vacancies and mortgage delinquencies surged, rents plunged and major new construction virtually dried up.
More than 100 commercial properties in Detroit (valued at $2.6 billion) were in some stage of foreclosure, bankruptcy or had their mortgages restructured as of the end of July, according to Real Capital Analytics. That makes Detroit second only to Las Vegas with the worst commercial real estate market.
"It's going to be a depressed situation for many years," said Dan Fasulo of Real Capital Analytics.
View the full article on Associated Press: Motor City's commercial property market ailing
Posted by: Matthew Stone