Will commercial real estate follow the fate of the housing market foreclosures? Should we be concerned?
However, land will still sell for less because the simple law of supply and demand has fewer people holding enough money to buy that piece of land you’re selling. Thus, we will (I think) not see a collapse in real estate so much as across-the-board re-evaluation of real estate to pre-bubble values. We did have a real estate bubble working there, which started shortly after the dot-com bust in 2000. Fools needed somewhere to put their spare money, ya see, and that was the “next big thing.” But barring actual destruction (terrorist, earthquake, etc.), the land and structures on it will still have intrinsic value (unlike stock shares, which have only an “agreed upon” value.
Related Questions
- How has the current state of the real estate capital markets affected the commercial real estate market?
- Will commercial real estate follow the fate of the housing market foreclosures? Should we be concerned?
- Did REITs predict the current problems that the commercial real estate market is experiencing?
