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  • Commercial Real Estate Faring Much Better Than Its Residential Sibling [View article]
    As a business owner with multiple retail leases expiring soon, I can tell you that commercial real estate has weakened greatly in the Sacramento area. Vacancies and business closings are up, and rents have dropped substantially over the last year. I track CBG (I am short), WRI, and KIM. All are down 20% in the past 3 months. CBG is down 40% in the last 6 months. It isn't going to get better any time soon.

    Commercial real estate will follow residential down the ugly path, partly for the same reasons (e.g., overbuilding on excessive credit) and partly due to the economic "slowdown" which has clearly already started. CBG is being hit first and harder because it is a broker, dependent on new leases. KIM and WRI are shopping center operators. Since leases turn over on a multi-year schedule, the impact on them is slower. When things turn up, CBG will benefit first for the same reason. But don't hold your breath.
    Dec 19 22:18 pm |Rating: 0 0
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