WSJ Gets Back to Reporting
Here is a good article on the commercial real estate market. It states that the downturn will be tempered. Most of the development dollars went to the construction of condos, which are classified as commercial developments during the construction phase. The commercial market did not suffer overbuilding. I looked at existing office properties in South Florida in 2004 and 2005 that were selling for approximately $200 per square foot. When compared to new condo developments that were selling for near $300 per square foot there is no mystery as to why so few commercial properties were built. This dichotomy was repeated in many markets. Some markets missed out altogether, I was in Denver last year, a city that had limited condo development, and it had no office construction either because the market was still weak. I tend to agree with this article more than this one from last week that I thought was shrill.