Listen to what Richard Parkus of Deutsche Bank has to say about commercial real estate. He said that "We are not only not approaching stability, we are at a period of maximum deterioration."
We have often said that after the collapse of residential real estate in the last year, the next shoe to drop would be the commercial market. What is being wrung out of the home market is now beginning to be felt big time in commercial real estate. Landlords are putting together all kinds of packages, including free rent and other perks, and still prices are falling. It is believed that values are down a whopping 50% from their peak in 2007.
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