Is commercial real estate really that important to the American public? Believe it or not, a number of acquaintances I run in to who are not in the business seem to be interested in how we’re doing. They all ask how things are going, and actually listen to what I have to say. But when you think of it, commercial real estate is an industry that impacts everyone.
So … how is it going?
Retail leasing remains healthy, although it is in properties where rents are in the sub $20’s. Good credit tenants are expanding, even while large national retailers are retrenching.
I see a slight increase in deal flow, but the receivers and lenders still have huge inventories of failed properties they need to get rid of. The market is still waiting for this to happen—it has to happen—but no one is anxious to take the “hit” to their financial statement.
Isn’t it strange to drive around Texas and realize that something is missing? Construction cranes!
Hang on; this too shall pass and become a fading memory.
Thankfully, we’re in Texas!
Sam Kartalis is president and chief operating officer of Henry S. Miller Realty Services LLC. Contact him at [email protected]