Nov 19 2009
Commercial Real Estate Reality Check: 2007 Commercial Real Estate Valued at $6.5 Trillion with $3.5 trillion loans. Today, Commercial Real Estate Valued at $3.5 Trillion with $3.5 Trillion in Loans. Can you spot the Problem?
Commercial real estate is dealing with the neutron bomb effect. The buildings still stand but the inside is gutted as if vultures had devoured a carcass. What we are seeing, like in many other sectors of our economy, is a distinction between reality based economics and the inflated prices of Wall Street. If we look [...]
Oct 26 2009
Commercial Real Estate Implosion: 67 Percent Fall in Multifamily Starts, Ghost Buildings, $3 Trillion in Debt, 41 Percent Drop in CRE, and Collapse in Rents.
Driving along the highway at night, it is an eerie sight to look at some of the vacant buildings. The lights are on but the floors are empty awaiting an audience that will never come. Can it be that commercial real estate, with over $3 trillion outstanding be in worse shape than residential housing? In [...]
