I pretty much know what is going on in commercial development in my community...and it’s dead. Has been for a year. Other than a large hospital being built, all commercial work has ceased. There are vacancies, but we were a rapidly growing community and now it’s ground to a halt. I was talking to a developer on Friday, and he says they are just treading water, and are out looking to pick off some decent properties from developers who are under a lot of stress. He said there are several big name commercial developers who may go under in the next six months, and for every 10 properties they own, only 2 or 3 are good investments. The rest are seriously upside down. It’s those defaults that are going to rock the economy.
I would imagine all those loans are mixed in with everything else like housing was and we know how bad that turned out there are trillions in derivatives things are much worse then our government is saying.
Commercial and industrial in the Missouri and Kansas area is dead. Industrial space in Same areas KC and STL at 60% Rate. Word on the street many are ready for forclousures.