Contractors, investors and developers are bracing for what could be the worst real estate crunch since the early 1990s, when the industry built a small city's worth of speculative office buildings that later went begging for tenants. Commercial property sales plunged 73% last year, according to Real Capital Analytics. Vacancy rates are rising, and hundreds of large properties are in default. The American Institute of Architects' billing index, a leading indicator of construction six months ahead, is at a record low. Unemployment in the construction industry is 15.3%, well above the average 7.2% jobless rate.
I can't wait for the commercial center and the 14 story residential development to take shape on the Barto property. Of course, this is the year the Steel Site will start to come around and we will get some sweet "Class A" office space. Perhaps the SVM will get fully funded by the Feds. They seem to be the only one with capital funds to spend.
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