This is a pay site, so I didn’t read the whole article. However, I have seen anectdotal evidence of a glut of commercial properties lately. Last week I was driving around carlsbad near the airport and saw approximatly 20 “for lease” signs in a two block area. These were 5000 to 12000 sqare foot buildings for lease in the palomar triad area.

I have also heard recently that about 2 million square feet of commercial real estate is coming online in southern California in the next 18 months and that there isn’t anywhere near that much demand.

This is a pay site, so I didn’t read the whole article. However, I have seen anectdotal evidence of a glut of commercial properties lately. Last week I was driving around carlsbad near the airport and saw approximatly 20 “for lease” signs in a two block area. These were 5000 to 12000 sqare foot buildings for lease in the palomar triad area.

I have also heard recently that about 2 million square feet of commercial real estate is coming online in southern California in the next 18 months and that there isn’t anywhere near that much demand.

This is a pay site, so I didn’t read the whole article. However, I have seen anectdotal evidence of a glut of commercial properties lately. Last week I was driving around carlsbad near the airport and saw approximatly 20 “for lease” signs in a two block area. These were 5000 to 12000 sqare foot buildings for lease in the palomar triad area.

I have also heard recently that about 2 million square feet of commercial real estate is coming online in southern California in the next 18 months and that there isn’t anywhere near that much demand.

On a national level, I’ve seen compelling evidence that commercial real estate construction spending trails residential real estate spending by about 3 years.

Commercial real estate is probably headed for the same cliff.

On a national level, I’ve seen compelling evidence that commercial real estate construction spending trails residential real estate spending by about 3 years.

Commercial real estate is probably headed for the same cliff.

Commercial RE is actually my thing; I only dabble on the edges of the residential side of my business.

There is such a glut of office and warehouse space in Carlsbad (as well as So. Vista/San Marcos) that it’s ridiculous. I don’t know who convinced these banks that there was sufficient demand for these units, but several somebodies (including appraisers) were telling whoppers and they should be punished for it.

There are other areas in the region with similar gluts, like E. Chula Vista and Temecula/Murietta. And they’re all going down, just as surely as the SFR market. The difference between commercial and residential is that commercial buildings can’t be filled simply by dropping the price. There has to be a business, and that business has to generate sufficient profits to support the building they’re in.

That’s why I think the “commercial correction” will come on even faster than the residential correction.

Commercial RE is actually my thing; I only dabble on the edges of the residential side of my business.

There is such a glut of office and warehouse space in Carlsbad (as well as So. Vista/San Marcos) that it’s ridiculous. I don’t know who convinced these banks that there was sufficient demand for these units, but several somebodies (including appraisers) were telling whoppers and they should be punished for it.

There are other areas in the region with similar gluts, like E. Chula Vista and Temecula/Murietta. And they’re all going down, just as surely as the SFR market. The difference between commercial and residential is that commercial buildings can’t be filled simply by dropping the price. There has to be a business, and that business has to generate sufficient profits to support the building they’re in.

That’s why I think the “commercial correction” will come on even faster than the residential correction.