Commercial Real Estate: The Next Hole in the Economy
Written by Webmaster
DC-area developer Jeff Neal gives the Huffington Post Investigative Fund a tour of empty commercial properties just blocks from the Capitol. Hundreds of small and medium-size banks are facing huge numbers of possible defaults by builders who erected thousands of office towers, condominiums and shopping centers with the easy credit available five years ago.
May 5th, 2010 at 3:12 am
@GrandPatzer Yes, you got it, the only difference is the size of the loans involved, think of last years residential bubble pop x10 as a very conservative estimate.
May 5th, 2010 at 3:44 am
Scary, and this commercial bubble will ripple around the world, when a large market like America is affected. As a tiny example of what it looks like, I was in Dubai when their commercial bubble went pop. Believe me, it isn’t pretty when it goes.
May 5th, 2010 at 4:41 am
So there was a residential real estate bubble burst, and now there will be a commercial real estate burst coming right behind it?
May 5th, 2010 at 5:16 am
kudos to Mr. Neal for accepting blame for the failure of his project…and for those of you that think he should have built “low income housing”, what in the hell have you done lately?
May 5th, 2010 at 5:18 am
“unavoidable bloodbath” – that really drives home the extent of the crisis.
May 5th, 2010 at 5:51 am
You took a gamble and you lost. Gambling isn’t investing. If you want to get down to the root, you created bad karma because you’re developing properties for your own selfish reasons. You spoke of replacing “crack houses”?, How about developing modern AFFORDABLE housing instead? Why can’t you be happy with compensation for your time in planning projects instead of trying to make a killing? Your way of thinking is KILLING US, but you’re not missing the payment on the Benz yet are you?
May 5th, 2010 at 6:45 am
Wonderful piece. A very sober analysis by this developer in a market that was less risky than most.
May 5th, 2010 at 7:15 am
In 2010 and 2011 1.6 trillion dollars of residential loans will adjust higher (Alt-A and Option-Adjustable-Rate loan programs). This will cause a softening of the market and the last 3 months of 2011 and the first 3 months of 2012 will be the softest time in Real Estate. Buy then.
May 5th, 2010 at 7:59 am
Silly goose his ego was too high to see the danger coming from over lending in the oversized, overbuilt, super size ‘big mac’ society. Something had to give sooner or later. And he thinks he’ll still bring down his children and they’ll be walking down the street and say ‘I thought of that’. What a moron.
May 5th, 2010 at 8:48 am
globalization who needs the American middleclass. Sure we built the country now were like the plus fifty executives dump us before retirement buy cheaper labor save a bundle. They seem to know or assume were spineless and take everything sitting down. Please don’t let them be right..
May 5th, 2010 at 9:38 am
I was going to buy a house in early December but then i was advised not to because apparently we might take another dip in February.
But who knows.
WE NEED TO GET THE FUCKING GOVERNMENT OUT OF THE DAMN MARKET. THEY ARE DISTORTING THE PRICES.
May 5th, 2010 at 10:00 am
over 10% vacancy doesn’t come overnight. Think about that.
May 5th, 2010 at 10:48 am
Fascism is what’s being promoted by the powers-that-be as the cure-all for America’s ills.
May 5th, 2010 at 11:38 am
@procommenter No “ISM” is likely to save us.
May 5th, 2010 at 11:41 am
Fascism will save us, somehow.
May 5th, 2010 at 12:41 pm
Well, the Sherman Anti-Trust Act does. But it doesn’t help that no one on the left or right seems to care about the Anti-Trust Act anymore. It doesn’t help that special interest lobbies like the American Medical Association, and special groups, like the insurance co. has specifically been exempted from that act.
Enforcing it is pretty simple; it’s just that no one does.
May 5th, 2010 at 1:22 pm
No ‘help’ from the cunts in Washington,
by and large, there are laughing at what
is happening. Unfortunately these goats,
sheep, are actual people, people that
never learned to count past ’2′.. 1, 2,
3 Third Party Candidate, this could have
been avoided decades ago.
So ‘goats’, ‘sheep’ what have you, because
the masses can’t count to ’3′ [three], here
we are. Way to go ‘Amerika’, you wrote
the script to a tee.
May 5th, 2010 at 1:27 pm
Well said. A complete goat-fuck by design. Then when everyone is penniless, they’ll institute government everything to solve the problem. Problem=>Reaction=>Solution. Hear the sheeple bleat for help…. Heeeeeeelp meeeeeee!
May 5th, 2010 at 1:41 pm
Saw this coming a mile away.
On a side note, it didn’t help that these buildings displaced thousands of poor and low income people.
May 5th, 2010 at 2:37 pm
That’s right Ladies & Gentleman,
The ‘Real’ real estate crash is on the
way. This will dwarf the fraudulent
‘housing crash’ by many magnitudes.
And, of course, further compound the
depression of housing prices. In other
words, This is Just The Beginning.
There will be ‘No Recovery’! Let’s make
that very clear. The U.S. is being
de-industrialized by the globalist,
inbred scum. Everything is proceeding
as planned.
Bang up job guys!
May 5th, 2010 at 2:52 pm
These are the types of characters who have captured the
American government and gamed the US financial regulatory system for pure personal greed .
May 5th, 2010 at 3:06 pm
Mixman77 please this is not a republican thing or a democrat thing, this is a greedy, the only jobs left in america, are the building, and all the buildings are empty, because people are addicted to credit, look at the derivatives, how does it feel to be a red chinese democrat or red chinese republican? Shit we are being so dumbed down by chemtrails nobody has the energy to think let alone build..
May 5th, 2010 at 3:49 pm
I hate the developers, and eminent domain, and in california we got the builders line up to build green, and SB 375, on the horizon, california has never had a problem with natural development, but now we are overdeveloped and the SCAG and RHNA figures are still coming, fricking insane councils of governments under orders from the UN agenda 21 building clusterfucks
May 5th, 2010 at 3:55 pm
This is exactly right!
May 5th, 2010 at 4:40 pm
So you’re telling me that you buy things you dont want to buy because the TV tells you to? You do that personally?
Hilarious. That pretty much explains your position on capitalism right there. You’ll believe and do anything exterior sources tell you to.