In this era of challenging times, there is no lack of people taking a "gloom and doom" outlook on the future. Weather it is the economy, politics, real estate, money....everything.
I guess it's only human nature. I could go on and on about this topic, but I think there is an important "silver lining" we can draw from these time.
First, I'd like to show you an article from Time. It illustrates some concerns about the Commercial real estate market. The premise is that we are about to see... I think you should read the article.
http://www.time.com/time/business/article/0,8599,1901718,00.html?xid=rss-business
Ok, so there are some challenges ahead in the Commercial Market. But the "silver lining" I mentioned is that we are learning.
Realtors are learning. We are learning ways to put deals together. (no deals, no food) Banks are learning how to deal with loan modifications, foreclosed properties, and short sales more efficiently. (something is better than nothing) Consumers are learning that there are opportunities out there to achieve their real estate goals.
The article from Time assumes that the Commercial Market will suffer the same mis-steps and mistakes of the past residential decline. My contention is that the Commercial Market will have learned from the residential experience.
Banks know now that it is better for them (and consumers) to work together to solve the problems a declining economy brings. My guess is that they will modify, modify, modify. Working with the consumer to modify their loans, re-negotiate rents, short sale properties can help minimize bank losses. Consumer losses too.
I also guess that there are alot of smart people in the market. Many have experienced these things first or second hand. I'm hopeful that the Commercial Market will not suffer from the same mis-step and mistakes.
What do you think?
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