Honolulu is hot hot hot
According to a Moody’s report earlier this month, U.S. commercial real estate markets showed some spark of life in the last quarter of 2009. The rating agency attributed that improvement to increasing demand and a shrinking supply of current inventory.
Moody’s listed the five best markets in the U.S. during Q4:
- Orange County, Calif.
- New York
- San Jose, Calif.
And Phoenix is not not not
The five worst markets during the period?
- Wilmington, Del.
- Trenton, N.J.
Still a huge supply glut
In a CB Richard Ellis Special Report, the commercial firm stated that the New York (specifically Manhattan) leasing market ended up in the first quarter of 2010, but that the city still must deal with a huge supply issue.
It will take time to eat through that oversupply of commercial properties on the market, and glut of vacant retail outlets. But even as we see a glimmer of hope, commercial defaults and foreclosure are on the rise. Real Capital Analytics says default rates more than doubled since the same time period a year ago, from 1.6% to 3.8%, and could hit 5% later this year.
CC Licensed image courtesy of sheepbackcabin via Flickr.com.