Sunday, May 04, 2008

WSJ Says Commercial Sector is AOK

I was sifting through my horrific backlog of reading material and came across this Wall Street Journal article by Peter Grant. He writes that "experts agree everything's fine" in the commercial sector, including malls, hotels, and office space. Some belt-tightening, a bit of a downturn, but no overbuilding, everything will be weathered in short order.

I wonder if the hotel owners who have 40% vacancy rates because of sky-rocketing fuel prices would agree. I wonder if mall owners watching anchor after anchor go dark would agree. As for no overbuilding of office space, maybe not in Manhattan, but take a look everywhere else. Here in Salt Lake City, several new office towers are going in and office blocks are popping up in the suburbs like dandelions, from Ogden to Provo.

Yep, no worries in commercial real estate. If you want to keep believing the Wall Street Journal is an objective news source rather than a cheerleader, good luck with that.

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