Economic downturn pounds commercial real estate market - USATODAY.com: "Contractors, investors and developers are bracing for what could be the worst real estate crunch since the early 1990s, when the industry built a small city's worth of speculative office buildings that later went begging for tenants. Commercial property sales plunged 73% last year, according to Real Capital Analytics. Vacancy rates are rising, and hundreds of large properties are in default. The American Institute of Architects' billing index, a leading indicator of construction six months ahead, is at a record low. Unemployment in the construction industry is 15.3%, well above the average 7.2% jobless rate."
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This is a second wave, coming after the housing market collapse. The article says we will have more business bankruptcies, more unemployment, and a drain on any recovery of economic growth.
2 comments:
Great article Florida Commercial Real Estate Investors but investors may want to consider another way to look for Florida commercial investments.
I started using BuilderBrokerNetwork.com, it's really inexpensive (I think it's $59.99 a year). Basically, it networks Florida commercial brokers, Florida builders, and Florida commercial investors together. They have a Wants/Needs section that allows investors or buyes who are looking for certain types of Florida commercial properties like Florida land for sale to post their needs then it's broadcasted to their database.
Hope this helps.
Commercial Real Estate
I am very sad to hear such news... I have been in Toronto mls listings business for 16 years and I don't remember such wild times. Canada is in real estate decline too, luckily, our mortgage structure is quite different so it's only very mild one. but the nervousness here is big.
Best wishes
Julie
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