Some areas of commercial real estate are looking good, though others are less positive, indicating the recovery will still be a slow one, as explained by this Wall Street Journal article. Commercial real estate losses have hit banks to the tune of $80 billion, only half of the Federal Reserveb s estimate for their total losses due to the recession.
But a Federal Reserve official said b worst-case scenarios are becoming increasingly unlikelyb at a commercial real estate hearing last week, WSJ reports. There are examples of big deals, especially in larger cities. But unfortunately, the increasing commercial property values are due more to the appeal of low interest rates to investors rather than actual upticks in rent or vacancy rates—two areas that must improve to boost the recovery.
Learn more about the wavering commercial real estate recovery from WSJ. And for South Florida commercial real estate services, contact Morris Southeast Group/CORFAC International today.
Image: Marlith via Flickr
Tags: commercial property, commercial real estate, Morris Southeast Group, recovery, South Florida, vacancy rates, values
