Wednesday, December 17, 2008

Will the Real Estate Market Rebound Soon?

The truth about the real estate market is that it will not rebound soon. In fact, we are quite likely to see the commercial side of real estate falter soon. Not many banks are willing to look at the fact that the commercial real estate market is under utilized. Many areas have less than 70% occupancy in their existing real estate holdings. No one cares that there is plenty of commercial real estate properties to buy or lease. The prospect of loaning huge multi-million dollar loans is too good to pass up. Those jumbo loans were real money makers for the banks and investors. Unfortunately, businesses can only move so many times. In some neighborhoods, many businesses are moving from one strip-mall to a newer one just down the street after only 3 years in business. The newer malls are giving away the leases just to have renters. Eventually, this market will fold also.

Read more at http://www.helium.com/items/1256687-will-real-estate-reboud-soon

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