Deterioration in all commercial properties
It was only a matter of time before deteriorating market fundamentals began to affect every asset class, and it’s a rare property that hasn’t been hurt by falling rents or occupancy.
National apartment and retail vacancy is now at record highs (going back to the 1980s), and office vacancy is approaching the highs of 1992. Hotels have had a disastrous year (revenue per available room is down over 18%); malls are still wretched investments (and will likely remain so after what is expected to be a poor holiday shopping season); and industrial properties have been hurt by continuing convulsions in the manufacturing sector, shipping and storage sectors. Even real estate such as parking lots, storage sheds, and farmland has been undercut by the recession.
Tags: commercial, real estate, recession