The Crisis Among Us

[Richard Lorenzen]

Does anyone have an opinion on the commercial real estate crisis and which areas of commercial it will have the most significant impact on?

Personally, I do not expect apartment buildings to be hit as badly as office and retail space. Rising vacancies in office and retail is largely due to a lack of consumer spending, lay-offs and business downsizing. However, as a result, won't these lay-offs (and high foreclosure rates in homes) cause consumers to downsize from their houses and condos to apartments, and increase occupancy levels in multifamily buildings? That's just my opinion.... I'm not an economist.

Thoughts?