Today I was reading an NAR update on Commercial Real Estate (CRE) - it seems that CRE is following the path that Residential Real Estate took two years ago!
Donald Trump just asked for more time to pay his $770 million in construction loans on his Chicago Tower. Many commercial builders may not be able to make their mortgage payments if absorption slows down vis-a-vis their business plans.
When the economy slows down = fewer jobs = less need for space. To add insult to injury, we'll see many banks suffering from defaults in their commercial loan portfolio next year...
Unfortunately I don't think this is going to help residential real estate either. Banks are going to feel weaker and lending is going to be very restrictive in 2009.