With the Residential Real Estate market beginning to pick up in some sections of the country, is the Commercial Real Estate Market coming back?
At this point, even though Residential Real Estate is coming back in some cities, the Commercial Real Estate sector still has to be considered in the doldrums as far as lending is concerned. The commercial vacancy rate is still very high in many areas of the country. Lenders are not excited to pursue this market as of yet. Another factor which makes them nervous is that lenders took huge losses in residential real estate. After the residential crash, many of the lenders that were lucky enough to escape the worst of the residential bust then endured major losses in the commercial sector.