{"id":11355,"date":"2009-02-20T04:01:16","date_gmt":"2009-02-20T04:01:16","guid":{"rendered":"http:\/\/127.0.0.1\/site\/2017\/2\/1985\/the_next_big_economic_problem_commercial_real_estate\/"},"modified":"2009-02-20T04:01:16","modified_gmt":"2009-02-20T04:01:16","slug":"the_next_big_economic_problem_commercial_real_estate","status":"publish","type":"post","link":"https:\/\/kendallharmon.net\/?p=11355","title":{"rendered":"The Next Big Economic Problem: Commercial Real Estate"},"content":{"rendered":"<p>\u201cI expect it to get much worse in the next two years. This is really going to be the story going forward, probably by the summer. We\u2019re going to be hearing more and more about problem commercial real estate loans,\u201d\u009d said Scottsdale economist Jim Rounds.<\/p>\n<p>Vacancies in commercial properties have skyrocketed, yet millions of square feet of commercial real estate are under construction and will be flooding the market in 2009.<\/p>\n<p>\u201cIt\u2019s kind of like getting punched when you\u2019re already down. This is what\u2019s going to happen in this economy, and I don\u2019t think people are paying enough attention to it,\u201d\u009d Rounds said. \u201cIt\u2019s going to lengthen the downturn and make conditions in 2009 worse than they would have been.\u201d\u009d<\/p>\n<p><a href=\"http:\/\/1chicagohouse.com\/2\/?p=66\">Read it all<\/a>.<\/p>\n<p><b>Update<\/b>: <a href=\"http:\/\/www.federalreserve.gov\/monetarypolicy\/fomcminutes20090128.htm\">In the minutes from their meeting released yesterday, this was where the Federal Reserve said their concern was focused<\/a>:<\/p>\n<blockquote><p>The pace of commercial construction also had slowed. A number of participants expressed concern that the commercial real estate sector could deteriorate sharply in the months ahead. They noted that a large number of commercial real estate mortgages will come due at a time when banks likely will still be facing balance-sheet constraints, the ability to securitize commercial real estate mortgages may remain severely restricted, and vacancy rates in commercial properties could well be climbing. Some participants worried that the outcome could be an increase in defaults on commercial real estate mortgages and forced sales of commercial properties, which could push prices down further and generate additional losses on banks&#8217; commercial real estate loan portfolios. <\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>\u201cI expect it to get much worse in the next two years. This is really going to be the story going forward, probably by the summer. We\u2019re going to be hearing more and more about problem commercial real estate loans,\u201d\u009d<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/kendallharmon.net\/?p=11355\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":794,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40,149],"tags":[],"class_list":["post-11355","post","type-post","status-publish","format-standard","hentry","category-economics-politics","category-economy"],"_links":{"self":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts\/11355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/users\/794"}],"replies":[{"embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11355"}],"version-history":[{"count":0,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts\/11355\/revisions"}],"wp:attachment":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}