I’ve been saying that the commercial real estate market is next in line to fall. The Arizona has put together a piece that discusses it and give some good insights, you can read about it here.
The question is can we afford these foreclosures? The collapse of the residential mortgage market just about did the United States in and has help to ring up the largest deficit in this nation history.
Is government going to step in and bail commercial lenders out also?
In the cycle of ups and downs commercial real estate is the next wave of foreclosures.
You see first is residential properties, then it goes to commercial properties and finally, industrial properties. When the market bounces back, the first to come back is residential, then commercial and finally industrial.
Here ar some figures being reported by the Mesa Tribune: complete store here.
As a side note I drove through an apartment/townhouse community yesterday and bases upon what I saw the vacancy rate of 59%
