The economy has been a major topic of discussion on CNBC, on main street, and around the dinner table for quite some time. So, how has it affected commercial real estate and redevelopment?
As my nearly two-month pause from this blog indicates, the economic difficulties have dominated the discussion. I can't say anything about the economy that hasn't already been said. There are a lot of writers monitoring this very topic.
From my perspective, though, here's where everything stands. There are an awful lot of bargains in commercial real estate, just as there are in single-family homes. There is also an extreme lack of available money from banks and other lenders, so taking advantage of those bargains tends to be left to those who already have the money.
Development has not completely stopped, though single-family subdivisions are not cropping up like weeds as we saw a few years ago. Redevelopment has slowed dramatically, since many of the players are the small guys who are infinitely dependent on other peoples' money.
Yet, there are still some bright spots. There are loft projects going on that are selling units. There are new restaurant and entertainment venues either under construction or ready to open.
The economy will come back. Will development be different? More than likely. Will it include more redevelopment and smarter building? I certainly hope so. Will I do my part to make it happen? Of course!
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