If there really is an economic recovery underway–no matter how weak–one sure thing that would kill it is a devastating collapse of the commercial real estate market.
And, I’m afraid, that is exactly what appears to be shaping up in the not very distant future.
A survey by the Real Estate Roundtable (which sounds like something out of the tales of King Arthur) reveals that executives “do not expect the U.S. commercial real estate market to emerge from critical condition any time soon,” according to a Reuters report.
It is not exactly news that the commercial real estate market has been going down the toilet for at least a couple of years. Still, it is disappointing to learn that this group of high powered execs is so down on the future health of this vital segment of the American economy.
Any suggestions on how to breathe new life into this dying market? Sure. Says the posting, “Policymakers need to restore credit availability…”
Really? Think that’s the problem? No or little available credit?
Guess you learn something everyday!
Photo Credit: rutlo
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Article Author: Charles FeldmanCharles has written 179 articles for us.
Visit Charles's Website: http://www.thefeldmanblog.com
Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.
Joshua Dorkin
{ 2 comments… read them below or add one }
Good observation Charles, but the shoe has already dropped. Vacancies are rising while new commercial buildings are being completed only to find they have no occupants…
Does anyone realistically think that banks are going to just unlock credit to anyone looking for some money to borrow? Until we see all the various aspects of the economic mess play out, the banks aren’t likely to give their money to anything but a sure thing, and why should they?