Special Commentary

Could Subprime Tremors Shake Commercial Real Estate?

Thu, Mar 13 2008, 10:28 GMT
by Anika Khan, Mark Vitner

Wachovia


Executive Summary

The abrupt collapse of the subprime mortgage market and severe correction in home construction and prices has raised concerns the same thing could happen to commercial real estate. During the boom years, prices for office, industrial and retail buildings rose even faster than home prices in many markets. Despite this one obvious similarity, commercial real estate is quite different from residential.

While a correction is clearly underway, the underlying economics of commercial real estate are much more solid and we do not expect a sequel to the housing collapse.


Published on  Thu, Mar 13 2008, 10:33 GMT

Wachovia Corporation  | P.O. Box 025383 Miami, FL 33102-5383
http://www.wachovia.com | sam.bullard@wachovia.com

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