Retail will crash in 2009

The total freeze in the credit markets has practically halted all shopping center transactions and the 500 lb gorillas are beginning to realize they are not immune. Developers Diversified Realty (DDR) is having a hard time closing deals, let alone turning a profit. The next depression will crash real estate values.

Category:

News & Politics

Tags:

• crash
• economy
• real
• estate
• 2009
• depression
• profit
• commercial
• retail

[ourearthhome]

This is just the most recent round of real estate speculation collapses that occur about every 18-20 years. Check it out. Is it not time to go beyond mere telling the story and talking about root causes and what to do about it? Is it not time to start questioning the validity of speculating in real estate the increasing value of which represents nothing real to the real economy except increased cost of access to land which represents 90% of the increase of real estate during the boom times?

[stonerj0e]

funny joke , masa7304 !

[snitchboy12]

☻/

/▌

/ \ Can I please cum inside of you so I could knock you up? Youre so hot if I don't knock you up I wouldn't have a chance.  You can close your eyes..

[moniequa]

I guess you are right.  I hope to see home prices come back to earth soon.

[wrinkles1931]

Yeah...well they can ask all they want...there are houses in my neighborhood selling for $400,000....but they won't seell for that..they have been on the market for 6 months...if I check zillow realestae (online) they are worth or valued $50-$70K less ...the market dictates the price....not the seller or ..leaser.....

[moniequa]

If that is the case, why do commercial real estate owners still ask for $200/sft. And some home sellers think their properties are made of gold and still demand high price for them.

[cwmillerrn]

5 stars for your humorous analogy. 5 stars for your dreadful accuracy.

Favorite lines, "Size doesn't matter" and "There's no one left to #$&@"

Good to inject some humor into this horrible reality.

[Namcap01]

Wow, Man

[aw3212]

The balloon payment is HUGE, you are right. On top of no available financing, the vacantcy rate is going to grow substantially because of weak sales. The retail big boxes will be empty, whcih will bring less customers to the smaller stores that surround them which will lead to their failures as well. I feel sorry for Obama because he will soon find out that a well written well delievered speech is not enough to save this economy.

[wrinkles1931]

My brother has been a very succesful developer in comercial real-estate over the last 15 years...he's also been a part time board member for several of the largest construction companies in the US. They are dead in the water...he knows it....it's so bad he's closed down 2 offices and says it's over..no return for many many years..if ever

[turbotrana]

I liked your analysis

[PatsBlog]

You're brilliant! I think President Obama should get you on his economic team. You are right, commercial real estate is about to implode in the same way the residential market went down the tubes two years ago. Many companies who have balloons due next year are going to find out they can't refinance them. Many properties that are performing acceptably will find themselves in foreclosure simply because they can't refinance. Thanks for some very astute and entertaining commentary.