Effects of a Recession

[Celia Moore]

What are the characteristics of a recession?

We are seeing the characteristics now as the economy slows down... Real estate is not valued on anticipated rent or construction cost increases. Loans are hard to find. Cash is king. Unemployment rises as businesses reduce their work force in preparation for a reduction in demand for their goods or services. Salary increases are smaller. Tenants cannot pay rent increases easily. Businesses will not expand to fill vacant space. Buildings that cannot give an investor a decent return based upon current conditions will not sell. It is a buyer’s market.

What other effects come from a recession...? It is time to prepare today.