Commercial Real Estate Bubble to Burst

A cross post from a guest blog post on the Houston Chroniclebubbles-of-commercial-real-estate

Commercial Real Estate Defaults Increase – A Good Thing?

Several economists I heard speak recently at the GHP Growth Summit pointed out that every recession in the US ends when real estate rebounds. Real estate leads us out of recessions. So just as real estate led us into this mess, with help from some really dim people who actually thought they were smart, (cough**Harvard needs Ethics training**cough**no really**) so we need real estate to lead us out.

To be clear, until residential and commercial real estate bottom out and rebound, the recession/depression will continue. You have to hit bottom before you can come back up.

But there is a problem with that. Commercial real estate is still in a bubble. And the commercial real estate bubble has not yet burst. It will.

Read the full post over on the Chronicle here.