Foreclosure Slump Hits Commercial Real Estate - AP
It is already well known that the American economy and real estate industry are floundering, largely as a result of declines in American real estate. For the most part, however, commercial property has been considered safe. At the top of the U.S.’s list for foreclosure rate hikes lies Las Vegas, where news writers are now reporting an impact on commercial real estate. The bulk of commercial closures in Las Vegas, unlike what Realty Store recently reported on New York City’s commercial buildings, are not related to actual commercial foreclosure, but are more likely to be related to the economic slump, job loss, and business owners moving out of town as a result of losing their homes to foreclosure.
By J.W. ELPHINSTONE
“Las Vegas has the distinction of having one of the worst housing markets in the country. But now that slump, along with job losses and high fuel prices, is infecting Sin City’s commercial real estate market, sending vacancies in all sectors sky high.
“The city’s commercial sectors clocked the second-worst increase in vacancies in the past year, according to Marcus & Millichap Real Estate Investment Services, following only Orange County, Calif., where the main problem is too many empty offices.
“The first domino for commercial real estate was the loss of construction jobs. The second domino was the effect of job losses, foreclosures and lost home equity on the local economy. And the third domino was the national economic slowdown,” said Hessam Nadji, managing director of Marcus & Millichap.”
Read the full article, “Real Estate Close-Up: Las Vegas.”
Copyright 2008, El Paso Times
Tags: foreclosure investing, foreclosure news, foreclosure problem, Real Estate, real estate bubble
