| IN THE August 9, 2011 ISSUE |
Several Factors Continue to Weigh Heavily on Languishing Office Market
| By Tracey Seslen, NREI Contributing Columnist |
The economic downturn has affected every commercial real estate property type, but the hardest hit continues to be the office market. Even before the recession, many corporate tenants had introduced a number of new office concepts, such as telecommuting and hoteling, that curbed tenant demand for space.
Since the deep recession and its aftermath, three other factors have helped define the market: lack of jobs, the changing way today’s office space is actually being used, and the sustainability movement that is changing how decisions are being made. The bottom line is that companies have become more aggressive at controlling their occupancy costs, resulting in tepid demand.
What Does S&P Downgrade Mean for Real Estate? Economists’ Opinions Vary
| By Matt Hudgins, NREI Contributing Writer |
Economists are divided over the commercial real estate implications of Friday’s historic downgrade of U.S. debt. Standard & Poor’s decision to lower its rating on long-term U.S. Treasury bonds from AAA to AA+ is, by itself, unlikely to affect commercial real estate investors directly, say experts.
Seven Steps to Help You Escape Hotel Ownership Prison
| By Brad Mead, Lodging Hospitality Contributing Columnist |
In a federal penitentiary you get up early, eat a minimal amount of food, work hard all day at menial tasks, get paid very little and can never leave the property. Sound a lot like your hotel these days? If so, it is time to restructure your debt.
After Easing for Two Months, Bank Failures Rise Sharply in July
| By Matt Valley, NREI Editor-in-Chief |
Thirteen U.S. banks failed in July, raising the total number of failures to 61 through the first seven months of 2011 and putting the annualized pace between 100 and 120, according to New York-based Trepp LLC. The number of bank failures in July was up sharply from four in June and five in May.
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