Looming Commercial Real Estate Crash: Where did all that content go?
I recently tried to look up where a Hallmark store was in Portland and of course I first searched online. Perfect… I found one that was close enough to stop by and grab a card. We headed out and went to the mall where the Hallmark was listed to be at, and much to our surprise, when we asked a local mall employee they said it wasn’t there any more.
That got me thinking, with all the commercial foreclosures that are piling up, there’s a ton of incorrect content online – so where does this content go when a business closes its doors? Who’s responsible for taking down a business listing or updating a new address for that business listing?
The current commercial real estate market is a nearly $8 trillion industry that is having its troubles. “Really since the start of the year the trouble is coming out of the woodwork as far as notices of default, foreclosures, bankruptcies,” said Bob White, founder and president of Real Capital Analytics, a real estate market research firm. “It’s growing alarmingly fast.” Currently, some $50 billion worth of commercial mortgages are in default or foreclosure. White and others in the industry say the worst is yet to come.
With $1.72 trillion of commercial real-estate loans outstanding in the U.S. today, and $300 million of that sum coming due this year alone, the Federal Reserve hopes to launch a program by next month to refinance large commercial properties such as office towers and malls. Although the sector isn’t in big trouble yet, rents and occupancies are starting to fall, and the Fed aims to provide up to $1 trillion of new credit to head off a “looming crisis” of spiraling commercial foreclosures.
It sure looks like a lot of commercial property address listings are going to be changing over the next few years.