Since 2008, when the bottom fell out of the housing and stock market, pundits, analysts and economists have been calling for a major crash in the commercial real estate market. It's yet to happen. True, Blackstone's 2007 purchase of the Sam Zell's Equity Office Properties for $39 billion proved to be the market top, but the commercial real estate disaster that accompanied the recession of the early 90's has yet to be realized.
Today's guest on the Daily Ticker, Mort Zuckerman chairman of Boston Properties, one of the largest REITs in the country, doesn't think the other shoe is going to fall. That's not to say business is booming. As is always true in real estate, it's about three things: location, location, location.
Suburbs vs. Cities
Smaller town shopping centers are struggling. "They don't have the big tenants with the strong credits that can, in a sense, pay the rent through the difficult times," says Zuckerman. Meanwhile, "in the major cities, in particular it's been much lessRead More »from Housing Market Hasn’t Bottomed Because “American Consumer Is Not Stupid”, Says Mort Zuckerman