Monday, May 19, 2008

Commercial Real Estate Update

Commercial Real Estate: "The problems are in all of it"
from Calculated Risk by CalculatedRisk
First a great quote via CNNMoney:
"On the commercial side, best I can tell the problems are in all of it - offices, retail, hotels. I think we will see a prolonged decline."Kermit Baker, chief economist for the American Institute of Architects, CNNMoney May 17, 2008

First off you should know that Calculated Risk is always negative, as a blog they tend to write ten to fifteen negative posts every day. They are rolling around in the possibility of a recessions.

CRE is very local in nature, as was the residential sector. The media may attempt to drive commercial into a recession or slowdown, like they did residential, but it may be too late since residential is already making it's comeback. Sorry Calculated Risk and Kermit ... I think this was last year's news. But it may scare some bankers, who don't seem to have any of their own ideas anymore, and slow down in areas where banks have control.

3 comments:

Nwi Reviews said...

Not topic related, just need some direction on commercial leases. Who is responsible to insure that a building or space is designed to meet the needs of the new tenant? I went on a call to a small restuarant that doesn't have enough cooling. This isn't the first time either. How can this be avoided?

brokers said...

Hello there;
We are private commercial lenders looking to help real estate developers in need of commerical financing.
If we can help, let us know.
Thank you,

Daltonsbriefs said...

nwi reviews, my humble apologies for the delay in replying, I had my commenting settings wrong.

In answer, the best way to avoid this problem is having the heating contractor involved during design. All too often the architect designs in a vacuum and then it gets built wrong but "from the plans"