Economic fundamentals, like employment, are inextricably linked to the performance of commercial real estate. As companies shed jobs over the past two years, office markets across the country experienced a surge in vacancies. Emptying buildings led to reduced cash flows, declines in values and increasing distress. However, the rebounding economy may prove beneficial to the foundering office sector.
"It looks like we're at the cusp of nearing stabilization, ' says Kevin Thorpe, chief economist at Cassidy Turley. "But it would be premature and imprudent
to say that commercial real estate has recovered. You really can't say that until, at the very least, the US economy is absorbing more space than it's shedding."
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