Make Note of Commercial Real Estate Troubles

This shows the trend in commercial real estate values over a period of time. This recession is taking its toll on commercial real estate. The following link will take you to an in-depth analysis on this subject. It is important information to understand the entire real estate industry troubles because as you may know, commercial follows roof-tops. This is a land planning term but it may very well become a true statement for the economic problems in the commercial real estate sector.

http://www.zerohedge.com/article/guest-post-other-real-estate-issue-revisited

Some other quotes from articles over the past several days:

• Commercial real estate troubles may be more widespread than housing problems
• US banks are holding more than $1 trillion of mortgages backed by commercial real estate that is losing its value every day
• The Federal Reserve and Treasury are trying to prevent a meltdown in the commercial real estate sector causing more problems for the economy

Do your own marketing study in your local area. Have you noticed more commercial "For Lease" signs along the road?

Have you noticed more and more empty stores? This represents small business not surviving in today's economy.

Will this be our next major economic problem?

There is always an adjustment in housing and commercial properties and some markets will fare better than others. Once the re-adjustment occurs in commercial real estate, then it will follow the upward trend of housing. There are positive aspects: cheaper lease rates, better terms, and investment opportunities in commercial real estate. Monday will be a better day!