Commercial property values in the U.S. declined in October to the lowest level in more than seven years as unemployment reduced demand for apartments, offices and retail space.
The Moody’s/REAL Commercial Property Price Indices fell 1.5 percent in October from September to the lowest since August 2002. Prices were down 36 percent from a year earlier and are 44 percent below the peak in October 2007, Moody’s Investors Service Inc. said in a statement.
Values are dropping as U.S. unemployment climbs and consumers cut spending. Office vacancies may approach 20 percent next year as employers hold off hiring, commercial property brokers Jones Lang LaSalle Inc. and Grubb & Ellis Co. said last month.
“The number-one issue facing commercial real estate right now is the value declines that we’ve seen since prices peaked,” Matthew Anderson, a partner at Foresight Analytics LLC in Oakland, California, said before the data were issued. “I tend to think that the size of the declines moving forward is going to be smaller.”
An estimated $1.4 trillion of commercial real estate debt is scheduled to mature over the next five years and Foresight estimates that 53 percent of it is “underwater,” meaning the value of the property is less than the mortgage, Anderson said.
More Declines Forecast
Commercial property values may decline by a total of 50 percent from the peak to the bottom, Anderson said.
“This is the worst that we’ve seen since World War II,” Anderson said.
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14 comments:
Not to worry. The Kenyan, as promised, will fix everything.
This must be what an empire looks like in it's final stages.
But Rick Pollitt says that it's OK to use 2 year old appraisals to pay $300,000 per acre for a parking lot for the Civic Center.
I would have thought that apartment rentals would be going up since so many are losing their houses. Where are all these people going when their houses are foreclosed?
Can't be true. The White House just announced that Obama has "strengthened America" over the last year.
yes i was just wondering if this means we will now get a "deal on the parking lot for the wycc
1:09 they are moving in with friends and family the way people did during the great depression. Trust me I have rentals and people are moving our every month and moving in with friends and family because they've lost their jobs amd unemployment either denies them or interrupts their benefits and they are broke. This nation is far worse off than what they are telling us.
ha, you guys haven't seen anything yet. You wait until later this year when the food shortages start to kick in. People will start hording food and you won't be able to get a loaf of bread for a hundred dollars. Start stocking up now while you can. Don't believe me? Watch the prices start to rise. Fuel prices are creeping up and no one even notices. We will soon be in the deepest depression you've ever seen.
We need a catalyst to launch us into the next level.
11:28 is right. Unemployment is actually at or around 20%. Not 10%. People are being denied benefits so they aren't reflected in the number counted. Not to mention the number of people who owned businesses and closed down. They can't collect unemployment and aren't reflected in the number counted. We're being lied to.
If I've said it once, I've said it a thousand times. They'll take from you until you have nothing left. Then they'll take even more, to a point you'll then start borrowing to pay off regular monthly bills. Once you've lost everything, they'll make you borrow and once they have everyone in the palm of their hands, they'll then start to control you. Many will be greatful someone came along to SAVE you and this Country will have been lost. While there is still strength with whatever is left, you better NOT take the risk that I'm right because if you do, you'll then be controlled and have absolutely nothing.
It wasn't that many years ago when soldiers were walking into your homes and taking it over for command posts. Don't you ever think it won't happen again and please don't come back here saying you have a gun and you'll protect what is yours.
If a team of 500 soldiers comes by and wants your property, they're just going to take it. Go to Annapolis today and let your voices be heard.
Then I quess 495 of them will succeed, the other 5 Ill be takin with me.
anonymous 12:04, its probably a LOT higher than 20%. I'd say its more like 30 to 40%. There are so many small businesses that have closed up shop it isn't funny.
The MSM refuses to even consider what you have stated about many of the people who don't even qualify for unemployment. Again, our government controls what is said in the media and this is exactly why the Blogs have taken over.
Better watch out folks because by the time you learn the TRUTH it will be way too late. You'll see.
Im living it right now. Uncharted waters for sure. I dont even care about me, the fam is who Im worried about. My destiny is approaching fast.
Im thankful that we had it as long as we did. Could of never had anything to begin with, I have way more than I ever deserved. Perspective is a tool, tools were meant to be used.
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