Dark Outlook for Commercial Real Estate in ′09

February 1, 2009

The year ahead is expected to be among the worst for the U.S. commercial real estate industry. In some of the largest markets like Chicago and Los Angeles, experts are reporting that a substantial number of office towers are empty.

On a national level, rents are expected to drop 10 to 15 percent. And in the nation's largest market, Manhattan, rents could drop as much as 30 percent.

The year ahead is expected to be among the worst for the U.S. commercial real estate industry. In some of the largest markets like Chicago and Los Angeles, experts are reporting that a substantial number of office towers are empty.

On a national level, rents are expected to drop 10 to 15 percent. And in the nation's largest market, Manhattan, rents could drop as much as 30 percent.

Vacancy rates are expected to rise to 18 percent over the course of the year. Because of the weakness in the private sector, owners are looking to a population they once shied away from—government tenants.

Topics

More like this