Witness The Commercial Real Estate Head-Fake

The commercial real estate slaughter of 2010 may be commencing. It’s not to say that all commercial real estate players are doomed, but those caught with high basis costs, due to buying high previously, are likely to be in deep trouble due to rent competition as explained here.

As shown by this chart from Econompic below, it’s starting to look like the recent rebound in commercial real estate prices was a head-fake.


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