Thursday, December 3, 2009
The Holiday Season Is't So Joyful For Real Estate
By, Meredith Anderson
With the holidays right around the corner people seem to be surprisingly spending! According to the Federal Reserve on Wednesday the economy is starting to see a slight progress in general.With the holiday season here retailers are excited for the sales and seem to have quite positive expectations. However the commercial real estate market doesn't seem to be sharing the happy news.
Commercial real estate is still a barrier to our recovering economy. Although residential real estate has seen a small increase in sales due to lower prices, not many new homes are being built, bank are loaning less money, more layoffs are occurring, and essentially most people cannot afford new homes. However the real problem is with commercial real estate. There is very little new construction happening. Because of the increase in rent vacancy levels are rising. The Fed described the commercial real estate market as,"very weak and, in many cases, deteriorating." We can just hope that with the new year comes better news.