The impending commercial foreclosure crisis will be one like our nation has never seen. Once bustling buildings of commerce, now many commercial projects have turned into ghost towns of economic destruction. With vacancy rates sky rocketing, tenants not paying rent, bankruptcies galore and that fact that no one is buying anything, can only mean one thing.
The commercial foreclosure tsunami has arrived.
It doesn’t take a self proclaimed real estate God like Donald Trump or these damn talking heads on cable TV that are paid to pump me up with false confidence to tell me that the commercial sector is in stage 4 of a terminal foreclosure fight to stay alive.
Reports from the 12 Federal Reserve Districts indicated either stabilization or modest improvements in many sectors since the last report, albeit often from depressed levels. Leading the more positive sector reports among Districts were residential real estate and manufacturing, both of which continued a pattern of improvement that emerged over the summer. Reports on consumer spending and nonfinancial services were mixed. Commercial real estate was reported to be one of the weakest sectors, although reports of weakness or moderate decline were frequently noted in other sectors.
Thriving entrepreneurs who once had products they could sell, now have realized that their line of wares are not needed in the “real world”. I hate to see my fellow Americans suffer, but many had companies and products that were mostly fluff and no substance.
They added no true value to our fellow man, except temporary value to a doped up consumer high on debt with no real rationing behind their buying habits. From designer jewelry, to selling mortgages and to designing custom choppers, our world can only support so many would be entrepreneurs that meant well, but failed to see their long term viability in our society.
When the people’s money on Main Street vanishes, the first thing they cut back on are buying things and more things. Life becomes about survival. Food and shelter come first and things now become worthless.
Look around your city. How many companies do you see in your city that produce things that your community truly does not need and are not necessities to live? Now look at the vacancies that have already occurred in your city. Imagine in two years that those companies that we do not truly need also going out of business and adding to these vacancies.
That is what your local commercial market will look like. Scary isn’t it?
{ 1 comment… read it below or add one }
Moe,
You have a clear understanding of where the rubber hits the road when it comes to the real affect of the commercial real estate devastation that is hitting home on Main Street USA.
It is refreshing to hear opinions that don’t reflect the propaganda we get from the main stream media about our “recovery”.