Commercial Real Estate Slowing Down?
Posted by Dylan on December 10, 2007Twice this weekend I read that the real estate market is slowing down. Is it true? With so many banks having to write down heavy losses due to sub-prime lending (the latest being UBS $10 Billion) that can only put a brake on the real estate market. No good saying that commercial and residential real estate is not the same – if the banks are losing money then the credit available to the lending market is going to be depressed
Of course the whole economy is slowing down due to lower consumer spending, lower consumer spending means lower money in business’s pockets, which in turn means less investment from businesses in longer term investments, such as real estate. Lets face it if you’re the owner of a corner shop who was looking to expand, then consumer spending lowers so suddenly you’re not as profitable and your shop is not as busy. Given all that would you decide to expand? Probably not.
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