Commercial real estate — including shopping centers, office buildings and industrial property — will hit a low point in 2010 not seen since the Great Depression, according to a national survey of real estate executives.
Values and rents will plunge, and vacancies and defaults will soar across all types of commercial property before the market rebounds slowly, according to the survey and forecast compiled by the Urban Land Institute and PricewaterhouseCoopers LLC.
“2010 looks like an unavoidable bloodbath for a multitude of borrowers, investors and lenders,” the report said. “The shake-out period may extend several years as even some conservative owners with well-underwritten loans from the early 2000s see their equity destroyed.”
