Bear On Wall Street: Commercial Real Estate
Reis Inc, a commercial real estate performance information and analysis firm announced office rents declined nationwide 8.5% over the same time period last year. Vacancy rates hit a five year high of 16.5%. With vacancies on the rise and lower property values year over year, there are more losses to follow for landlords as well as the banks providing credit. More importantly unemployment will peak at over 10% over the next few months with no improvements in sight for the next 2-3 years. With jobs being lost this also means space is not needed.
Commenting:
I watched growing up small businesses closed one by one.The For Rent signs have been weather beaten.The store fronts have debris.The windows are gray with dirt.The mom & pop times are just a memory.These are businesses who employed neighbors,friends and family. The closed businesses will be there as a reminder of employment. Perhaps one day someone may want to start a small business…I do.This will help boost the economy(a little).
If you think I am dreaming about starting a business in these times,don’t wake me.