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Commercial Real Estate Suffers in 2008
When many of us think of the downfall of the real estate market in Palm Beach County and the rest of south Florida, we generally think about residential real estate. We know that our neighbor went into foreclosure, and that our own house decreased in value. But what about commercial properties and the commercial real estate market? Many of us fail to think about the commercial sector unless we are directly involved in it (i.e. commercial realtors, small business owners who own or lease office space, owners of commercial property). Well, the commercial real estate facts from 2008 are along the same lines as the residential real estate facts: the numbers are still in a decline. Palm Beach Post real estate blogger Jeff Ostrowski reports that in 2008, “The biggest sale was GL Homes’ $117 million purchase of residential land. A hefty deal, for sure, but well below the 2007’s top deal of $200 million (for Phillips Point) and 2006’s big deal of $170 million (for PGA National Resort).” And now, with the downturn of the national overall economy, businesses both big and small are generally not in a position to boost the commercial real estate market. With layoffs and bankruptcies running rampant, will the commercial real estate market see even more of a decline? Or will the still-stable companies step in and snatch up cheap commercial space as a solid investment for their companies’ futures?
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