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Property Crossroads - Real Estate Info

Commercial real estate suffering, too

by Dan on May 27th, 2008

We all know that the housing market is suffering. But what about the commercial real estate business?

It’s slumping, too.

According to this story by Financial Week writer Frank Byrt, retail vacancies are at a 12-year high. Office vacancy rates are beginning to rise, too.

The loss of thousands of office jobs and a reduction in consumer spending have caused a shrinking demand for office and retail space for the first time in five years, according to the story.

There is little relief, then, in any sector of the real estate business. And while this news seems awfully grim, it’s all about patience. Real estate is cyclical. It goes up and down. The problem is that the last “up” cycle lasted so long, people got spoiled. How long will this “down” cycle last? That’s hard to say, though a steady rebound beginning in 2010 is a good bet.

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POSTED IN: Breaking News, Buying a Property, Commercial Real Estate, Insights and Commentaries, Mortgage, Office Space, Real Estate Terms, Rent, Road to Profits

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