News and Events
Commercial Property in a World of Hurt
Retail sector leads the decline, with vacancies at a 12-year high.
May 27, 2008 Financial Week Frank Byrt
Even if bank executives are right when they say we're halfway through the credit crunch, it would mean that there is just as much pain still to come for the economy as it has experienced already. The commercial real estate industry will likely bear a good share of that torment, given the declining fundamentals seen in the first quarter and the tough economic conditions predicted for the rest of the year.
Indeed, the commercial real estate industry is facing its most challenging period in years. The loss of thousands of office jobs and the reduction in consumer spending have resulted in shrinking demand for office and retail space nationally for the first time in five years. Meanwhile, retail vacancies have spiked to their highest levels since 1996.