Moodys is apparantly predicting a continuing downturn in commercial real estate over the next few years. See post on iStockanalyst and Reitwrecks, Commercial Real Estate To Bottom In 2010 - 2011. It's not that I want to hear the bad news, its just a relief to finally hear some experts actually making a common sense prediction. Over the last 2 years, I have been hearing the expert economists pooh-pooh gloomy predictions and insist that everything will be fine. I get the idea that they may be trying to avoid self-prophesysing (forgive the apparent misspelling), predictions but how about some reality. Where have the experts been. If you have been out in the streets over the last two years, you could see the signs, (For Sale Signs). In Orange County, as home inventory increased to record levels along with prices, didn't anyone see that prices had to start coming down?
In Rancho Santa Margarita, Ca., you could not get any retail space. Nothing was available. Tenants were calling me to find them space and I couldn't find them any. Now, you are beginning to see more and more For Lease signs and it is going to get worse, particularly in retail.
Since January, I have been accepting new commercial landlord clients, and my volume of new cases dealing with evictions, rent collections and tenant disputes is increasing and I expect it to increase dramatically over the next few months until sometime in 2012 to 2013.
If you are a commercial landlord, now is the time to consider getting and keeping paying tenants, even if you takes rent reductions or concessions to do it. Do not refuse to lower prices as many delusional homesellers did in 2007 & 2008.
Recent Comments