Wednesday, November 12, 2008

Monday Was an Awful Day
The bankruptcy of DBSI stole the headlines on Monday, but it was not the only bad news of the day. It was an ominous day for commercial real estate. I don't have time to go through all the news, but the following headlines stood out:
  • Circuit City's Bankruptcy. It was already slated to close 20% of its stores and the bankruptcy will lead to more closures and possibly shutting down the entire chain. More big box space will be available.
  • Las Vegas Sands Demise. More news today, but Monday was a key day. Las Vegas Sands is stopping construction on its residential tower. It is looking for capital to complete its foreign developments.
  • Donald Trump's Windy City Problems: The Donald's development in Chicago is in trouble so he is suing his lenders. (As an aside, the building is butt-ugly. Trump's taste is what should be sued.)
  • General Growth Properties Threatening Bankruptcy. This is not surprising, but more fuel for Monday's bloodbath. It harbingers more problems for retail real estate.
There was probably more bad news, but above struck me as relevant.

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