Finally an honest assessment of commercial real estate conditions

Implications: Fasten your seatbelts because its going to be a bumpy ride. As this is just the beginning of a down cycle in commercial real estate, there will be a major shake out or as some have said a culling of the herd.

Analysis:  Not much needed other than noticing the widespread nature of this downward market. And the problems will continue to compound themselves. As this writer has been saying, you can’t kill such a major part of the American Economy as the housing market without major collateral damage to other aspects of the overall economy.  

I would disagree with the one aspect of the article and this the optimism for Industrial real estate in the major port areas. As the economy slows so do imports. Even with the weakened dollar supporting the United States’ export business; it would not appear to be enough activity to sustain current levels of occupancy.  

Just remember one person's pain is another's joy.
There are funds  being created to take advantge of this cycle...
These funds in my opinion are too early to be in any buying mode.

The other interesting aspect is the broker comments about the disconnect between tenants and landlords. Its the landlords who are in denial not the tenants. Tenants will dictate the demand. Owners react to demand. As the fundamentals weaken, you'll see what has already started to come about which are major leasing concessions by the landlords. That sinks the effective rents.

Stay tuned...