As Unemployment Goes, So Goes Commercial Real Estate
By Bonnie Erbe, Thomas Jefferson Street blog.
The unemployment rate was, while not unexpected, certainly the worst economic news to come out recently. At 8.5 percent, we're nearing the rates in developing nations. Maybe we'll BE a developing nation if companies keep shedding jobs.
But I point your attention to something else they are dumping: real estate.
Calculatedrisk.com quotes the Wall Street Journal:
Companies struggling to cut costs dumped a near-record 25 million square feet of office space in the first quarter, driving vacancy up and rents down, according to data to be released today by Reis Inc.
...
The office vacancy rate nationwide rose to 15.2% from 14.5% in the previous quarter, and likely will surpass 19.3% over the next year, according to Reis, a New York firm that tracks commercial property. That would put the vacancy rate above the level during the real-estate bust of the early 1990s, the worst on record.
Not that many companies want to be in downtown areas anymore (after 9/11 even financial firms fled Wall Street for the 'burbs) but companies that do are sitting pretty to cut some inexpensive deals. Gotta look for silver linings somewhere...
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Tags: real estate | recession | unemployment
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Reader Comments
Rebel of NC... Just FYI...
When Ms. Erbe speaks of "god", she is speaking about Mother Nature or the Nature Goddess or some other fem-god she has created in her own mind.
With regard to the blog... The tidal wave of commercial real estate foreclosures is just starting to hurtle toward the shore. And I don't think the magic Obamawand and his chanting Obamatrons are gonna stop it.
GOD Female?
Miss. Erbe
I saw you on a pbs channel and you refered to God as a Woman or "SHE" well this is an area that I'm very clear on..first God is not male or female as human beings go, but "HE" is spirit as stated by "His" Son Jesus Christ John 4:23,24..From cover to cover in any eastern text God is always refereed to as HE, Him, Father, Father of all life, Almight God and Father...This fits greatly as all life starts with seed, and the sould life comes from the male side of humans...God had Paul to teach about this lie you and people like you are pushing to hold your filthy lives up as if life could come from your choosing actions( Romana 1:23-32.)you have no bibical research skills, as is clear, and you should keep your mouth closed...Exodus 20:1-6 teaches as does Romans 1:-32. no one worships anything formed made....GOD IS NOT A WOMAN!
DJ US REIT market
Hey Bonnie:
This makes total sense to me as does the fact that the US CRE market is in for much pain the next two to three years. What doesn't make sense is the movement that the various Dow Jones Real Estate Indices have made this past week.
Any ideas?
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