CRE STRUGGLES CONTINUE, Despite Some Positive Signs
BY HAROLD J. BORDWIN, CO-PRESIDENT,
GA KEEN REALTY ADVISORS LLC
Not surprisingly, the commercial real estate (CRE) market, as an integral component of
the overall economy, continues to
struggle in the aftermath of the Great
Recession, affected by all of the same
factors impacting other sectors of the
economy: the low growth of the U.S.
gross domestic product (GDP), high
unemployment and underemployment,
residential housing market distress,
political dysfunction in Washington,
and the ongoing crisis in Europe.
differences in how different property
types and markets are weathering
the economic storm. This article
focuses on the interrelationship
between consumers, the overall
economy, and the CRE market.
mortgages (including subprime
loans), and home equity loans.
Notwithstanding these macroeconomic
factors, within the CRE sector there are
Consumer spending has accounted for
an increasing percentage of GDP over
the past 50 years. Personal consumption
expenditures ranged from 60-65
percent of GDP from about 1950 until