With a dismal year now in the books for home builders and home owners. What will be next for the real estate market in 2009? Well it looks like it may be commercial real estates turn to take a major hit in the wallets for 2009. As companies across the country continue to make cuts just to survive and some companies closing up shop all together. The demand for office space and other commercial real estate properties is expected to drop to some all time lows.
Vacancies are on the rise and rents are on the decline as landlords are scrambling to make deals with the tenants they do have. So as much pain as the housing market has been in with mortgage crisis and rising foreclosures. Analysts are expecting much more of the same for the commercial real estate market in 2009. There are shopping malls, office buildings and hotels all over the country that are being hit hard with vacancies.
So much so that sometime during the 2009 year we may start to see calls for a national bail out plan for the commercial real estate market. Much like what we saw for the home real estate market in 2008. With all this doom and gloom what could possibly be the bright spot in all this mess?
Well if you are a renter of commercial real estate this is great news for you as the pendulum of bargaining power has swung in your direction. Now is the time to renegotiate your long term contract if possible. As no landlord is really in a position to be loosing the tenants that they do have with all the vacancies on the market already.
The other bright spot in all this mess of course is that there will be some great commercial real estate available on the market to be had. We all know that there are still plenty of investors out there they are just holding back waiting for the market to hit the bottom. When that happens you will see some great commercial locations start to change ownership.
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[...] fair a little better. That status is faltering fast however as well over $170 billion in non-bank commercial mortgages are coming to the end in 2009. With that much on the books and the financial market in the mess that it is in [...]