Bankruptcy

Mall Vacancy Rates Soar

By mcbride

Large malls now have a vacancy rate not seen in 18 years.  However, rental rates, while down, have yet to fall significantly.  No doubt that will change as the retail situation continues to deteriorate.  ?Many experts believe commercial real estate will be the next bubble to burst. ?Losses from commercial real estate will be quite high by historic standards,? Eugene Ludwig, chairman of Promontory Financial Group, a Washington-based consulting firm to financial institutions, told Bloomberg News. He is a former comptroller of the currency.  The default rate on commercial mortgages held by U.S. banks in the first three quarters of 2009 has been the highest since 1993, according to property research firm Real Estate Econometrics, Bloomberg reported.?

 Here is a link: http://articles.moneycentral.msn.com/Investing/Dispatch/market-dispatches.aspx?post=1529973&_blg=1,1529973

Michael

Full post as published by Texas Lawyer Blog on January 06, 2010 (boomark / email).