By, Meredith Anderson
As the economy seems to be seeing a light at the end of this very dark and long tunnel commercial real estate continues to pull us further back. Commercial real estate companies are now seeming more and more ready for acquisition however with high rates of unemployment, hard lending processes, and uncertainty from investors, commercial real estate is far from out of the woods yet.
Although residential real estate seems to be easing back to a more positive situation, commercial real estate seems to have a gloomier future. With the recent issues with Dubai World, many are feeling that things are only going to get worse before they ever get better. The default rate in speculative debt is said to hit an all time 28 year high by the end of the year. Experts seem to be blaming this trend on the continues rise in unemployment which in essence is hurting the cash flow in the industry. It is said as long as this unemployment trend remains so will the commercial real estate concern. Credit is said to be the second leading cause for this unfortunate trend. Banks are becoming even more unwilling to give out trends protecting themselves for what might come in 2010. According to many, 2010 will be the rock bottom for commercial real estate.