March 10, 2008

Malls, Offices May Slump Less Steeply Than Homes -

Malls, Offices May Slump Less Steeply Than Homes -

Today's Wall Street journal article talks about commercial real estate and it reiterates what I have been writing about all last week, better written though, may be they read my blog, commercial real estate is not likely to suffer in the same manner as residential market.

The article mentions the controlled and measured construction of commercial properties as seen in graph. It also contrast the difference between commercial and residential debt and how the fundamentals of the commercial real estate stronger than the residential market. It also confirms that the decline in value of commercial debt is a capital market problem rather than properties fundamentals problem.

I think some REITs and commercial real estate debt can offer great opportunity for investment due to the unjust panic around them.

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