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Due to lack of liquidity, the commercial end of real estate may be going through some rough times soon. The lack of consumers putting funds into the sector due to understandable consumer hesitation is the main reason behind the bleak outlook.
While some areas are still looking up, others seem to be causing more and more concern.
According to Moody’s Investors Service Inc, prices were down 36 percent from a year earlier and are 44 percent below the peak in October 2007. Also, commercial property brokers Jones Lang LaSalle Inc. and Grubb & Ellis Co said that due to unemployment, office vacancies could hit 20 percent next year.
(Source)
It may take longer for the overall economy to show improvements across the board, longer in fact than the recession has even lasted. While there is already a dim light at the end of the tunnel.
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