Commercial real estate (this mainly refers to offices) is actually improving! This is some of the best news anyone has heard in a long time. According to Realtor Magazine, “troubled loans are dropping, occupancy is soaring, and office building sales are rising”. The number of defaults is also falling. After three long years of vacancies, low sales figures, and lousy rents the worst may be over. Could this be the boost the market has been waiting for?
Regardless of this good news, I think the market for real estate as a whole will take much longer to recover. I don’t think this small improvement will make much of a difference in the grand scheme of things. After all— in the U.S— the vast majority of properties (in terms of value) are homes. Vacancies and foreclosures in the residential segment are still sky high. Nonetheless, at least for one market segment (commercial), it’s a start. Don't get me wrong, this is still good news!
No comments:
Post a Comment