The saying is that "retail follows rooftops", but offices follow them too: [Thanks L!]
When the housing market began collapsing across the developed world, commercial real estate remained a bastion for builders. But now the global recession is dragging it down, too. Central business districts that only a year ago were crowded with construction projects are emptying out as office tenants cut staff and operations. Building values are sinking, while delinquencies on securitized loans have tripled in the past six months.
The abrupt downturn in commercial real estate is punishing cities as varied as Detroit, Dallas, and Hartford, where downtown office vacancy rates top 20%. Unoccupied space is piling up quickly in San Antonio, Las Vegas, Charlotte, and San Jose. Outside the U.S., high-profile towers have been halted everywhere from Dubai to Santiago, Chile.
New York, though, may be the epicenter of the bust. The world’s biggest office market, with roughly 350 million square feet of floor space, New York added 2.9 million square feet of vacant property in 2009′s first quarter alone — more than the entire Empire State Building. In that same period, calculates commercial real estate brokerage CB Richard Ellis, rents slid 14.6% to an average of $57.35 per square foot, the largest quarterly drop on record.
Remember this video? Expect similar ghost buildings here.
You’d think we’d learn from previous mistakes.
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Mish's Global Economic Analysis
Ohio Fraudclosure
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The video is very telling, had this financial center been completed, try and imagine the amount of money that would have had to be raked off the top to support these behemoths and their inhabitants?
I have a nagging suspicion that the entire world financial empires are a phantom creation of mankind’s worst attributes; power and greed.