Categorized | Commercial

United States Commercial Real Estate Market on the Decline

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For a time it seemed that commercial property in the United States was defying the struggling overall market, and rebounding better than expected. However, that rebound was short lived, as the market has once again experienced a drop in its numbers.

Analysis of the third quarter shows that the volume and value of commercial real estate property fell significantly in the third quarter. There was nearly ten billion dollars less in sales when compared to the previous quarter.

The commercial market has been hindered by two key factors. The first is that many economic analysts believe that Europe’s debt crisis will expand and become global. The second concern is that the United States may once again be facing another tough recession. When considering that commercial real estate bonds have also become less available, the commercial real estate market in the United States is essentially being bombarded by the perfect storm.

Some experts believe, however, that the short-lived recovery was not sustainable in the first place given the market conditions. They believe that the commercial real estate market will likely experience similar results to the residential market. Other experts, though, are quick to point out that the market has rebounded since the end of the housing bust in 2009, thus distinguishing it from the troubled housing market.

There were some positive notes in the third quarter report that give hope to the commercial property industry. Hotels, apartments, and office buildings all experienced show increases from a year ago. As such, many real estate analysts believe that the overall decline is not a sign of the market coming to a crashing halt, but rather that it is simply slowing down.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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