Posted on 11/07/2009 5:10:58 AM PST by Erik Latranyi
After spending more than a year in suspended animation, the commercial real estate industry is expected to hit bottom in 2010 with a wrenching thud.
Owners of business properties such as office buildings, warehouses and malls will suffer a surge of painful defaults, write-downs and workouts with their lenders as the market finally faces up to the reality of its diminished conditions, according to a report set for release today.
The long-awaited blood bath, however, will benefit investors who are able to swoop in to take advantage of record bargains.
Unlike the formerly overheated housing market, which is in the process of being purged through foreclosures and sellers' growing willingness to lower their asking prices, the business of buying and selling commercial real estate has been stuck in neutral since the recession kicked in.
(Excerpt) Read more at latimes.com ...
Of course, Obama will say he inherited this from Bush.
...seeing it at a mall nearby....
“The current real estate scene is ‘definitely grim,’ he said, but the outlook for three years from now and beyond is much better.”
Well, Duh! Three years out? As soon as we dump the dead weight in Congress, throw out the unqualified 0bama and get a true Republican in the WH, things WILL turn around. :)
Actually, those of us sitting on cash will be king when it comes to snatching up properties. My Grandpa did that during the Great Depression, evil Capitalist that he was. Bought whole homes full of belongings that people were selling when they defaulted and/or moved on to greener pastures. I have the inherited antiques to show for it.
I’ve flipped houses in the past, but I never want to be a landlord again.
The down leg will continued through 2010.
But the truth is, no one knows how bad all of the economy is going to get.
How can the LA Slimes pretend to predict how bad it will be without assuming unemployment (U3) reaches 25%?
Actually, Freddie/Fannie will just extend their 'rental' program and before you know it, 50% of all commercial real estate will be gov't owned.
True, dat. I was looking at it from a non-conspiracy-theory angle, LOL!
Ya know—I actually remember a time when there were no malls and we managed to survive.
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