The supply of homes for sale in the Bay Area has dwindled to nearly nothing, perhaps explained by delayed foreclosure activity and changing social mood. But, the supply of commercial properties for sale has crashed as well. Supply of Multifamily Properties Supply of Office Properties Supply of Industrial Properties Charts and data via Loopnet.
From Zero Hedge: The popularity of Internet shopping is having a considerable impact on the retail landscape; mall vacancies are at the highest level in measured history, big box stores are looking to reduce their footprints, and those selling book, electronics, and sporting goods are closing. During the third quarter, vacancies at regional and super-regional [...]
Please take a look at this link of a 360 degree photo tour of several spots in or around Detroit, including the abandoned Michigan Central Train station.
Online retail sales keep climbing, big box retailers keep wondering what to do with all their space, and small stores struggle to survive at all.
No need for a fancy report to see the signs of decay in CRE. Signs of the ongoing CRE meltdown are everywhere–empty storefronts, mall shops and vacant office complexes abound.
About 1/3 of the shopping center is currently vacant – with more (like blockbuster) soon to come. You’d think the landlords and owners would start to realize that their rents are unrealistic.
Companies are moving at the drop of a hat to get better rates or a better location for the same price. The effect of this is of course deflationary, adding to price pressures and more commercial real estate defaults.