The latter stages of a recession are often the toughest–when everyone’s reserves are depleted, the credit cards are maxed out, and people and businesses are throwing in the towel. Add to that that this is the weakest “recovery” on record, and lots of vacant commercial (and housing) vacancies is not a surprise.
I just drove through several midwest states, and the situation is far different. Few downtown vacancies, rents strong, low unemployment rates, and some building still going on. Remember that CA unemployment rate is second highest in the nation, below only Nevada, since even Michigan is recovering faster than CA.
An attorney relative of mine negotiates for building contractors in MN and North Dakota. ND cannot get enough workers, with the country’s lowest U. rate, below 4%. McDonald’s has to pay over $12/hour.
Of course, these are natural resource states with sane governments, low taxes, and a more business-friendly atmosphere than CA.
