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.