Same problem here in Portland, Oregon. Near our home, a whole block of CRE is empty in the car country district. Dodge, Mitsubishi, Suzuki, Oldsmobile, Pontiac, Isuzu, Saturn have all left huge CRE footage empty. Since they are auto dealerships, it is hard to imagine any use for the properties (especially with all the environmental issues involved). In downtown, a skyscraper was foreclosed (interestingly, CALPERS was a part owner), another under construction has been mothballed with a big hole dug in the ground and boarded up in the center of downtown. Today, Saks 5th, the anchor customer of a prestigious downtown development announced they are closing at end of lease.
I think many businesses are closing or moving out after end of expensive leases. A 50% vacancy in high cost CRE seems likely for a long term.
