AlanB

Commercial Real Estate Loans May Be Next Shoe to Drop

This will be interesting to see how it unfolds. In the San Francisco Bay Area the competition for quality commercial real estate assets was intense over the last few years. The speculation was based on improving market conditions (i.e. better future rental rates). So now you have a weakening economy, less job growth and therefore less tenants expanding. Many of these deals were financed with short term money. Refinancing in today's market, I'm guessing, will be more expensive and/or the debt will be less available. And we'll continue to see more foreign sources stepping in. My company, rofo.com is a resource for businesses to find commercial space (office, retail, industrial). We have not seen a fall off on the tenant demand side for space (as of yet) but we are seeing more sublease spaces coming on the market. It will become more of a buyer's market over the next couple of years.