Commercial Real Estate Crash Triggers 97% Property Value Drop And Hit 2008 Levels
The vortex of declining values in commercial real estate is getting wider and increasingly threatening. Imagine you bought a property for $300,000 expecting the investment would not only pay off overtime but also appreciate due to the normal dynamics of the real estate market.
Fast forward to 10 years later, you find out that your property has become virtually worthless, even though there’s nothing damaged on its structure and your neighborhood hasn’t changed significantly.
You are still paying off your mortgage loan, and after prices have plunged seemingly overnight, now you’re buried on negative equity and stuck with a property no one seems interested in buying.
Well, that’s what’s happening to commercial real estate owners and investors. But instead of $300,000, we’re talking about properties that were initially sold for between $3 to $300 million dollars or more.
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