Commercial Forecast
Commercial Forecast: Dark Clouds Ahead
Source: realtor.org
"NAR Chief Economist Lawrence Yun sounded a downbeat note on the state of the commercial real estate market over the next few years in an address Friday afternoon at the 2009 REALTORS� Conference & Expo.
Yun said the most immediate problem for this sector is simple: There aren't nearly enough buyers.
"Who is buying? The answer is no one," he explained. "The level of transactions is way down. We're looking at an almost 90 percent decline from peak to current levels."
One particularly hard-hit area of commercial is the office sector: Vacancy rates are getting precariously close to 20 percent and sales volume has fallen as far as 93 percent from its peak just a few years ago."
The news mentioned in this article is not unexpected. Lawrence Yun's comments are on target and were predictable considering our current place in history. Let's hope the dramatic declines do not last too many quarters.
- Owen Ahearn | Flag this comment for review