2007-12-27wsj.com

The credit crunch triggered by the downturn in the housing market is creating problems in commercial real estate, driving down prices of office buildings, shopping malls and apartment complexes, and leaving some owners scrambling for cash.

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Prices, however, haven't appeared to fall, though much like residential real estate, there is often a period where buyers stop buying but sellers refuse to lower prices.

They will fall. As we've been saying for well over a year: commercial cannot soar without a strong residential sector and consumer economy. And "up" does not appear to be the likely direction for quite some time.



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