Commercial Real Estate: Retail and Office Space Vacancies Increase.
By William Hudson
Before any financial crisis, there are certain signs that appear that should cause homeowners and investors to batten down the hatches. Although this is an unscientific analysis, over the last three housing bubbles certain patterns emerged. First of all wages will stagnate, next the cost of living inflates, high-end condo sales slow, and then commercial real estate prices decrease while vacancies increase. After these events occur- the housing bubble appears next. We are seeing all of the economic indicators that were seen in 2007 before the Great Recession.
All of these issues are now in play, and at this time the state of commercial real estate is of particular concern. It is projected that commercial real estate prices will fall by 5 percent or more in the next year as the global economy teeters, retail stores are forced…
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