Stock analysts say commercial real estate is the next ticking time bomb for banks. Big banks – like Bank of America, JPMorgan Chase and Morgan Stanley – each hold tens of billions of dollars in commercial real estate securities. The banks also invested directly in properties.
By CHARLES V. BAGLI THE NEW YORK TIMES
**Published: Tuesday, January 6, 2009 at 1:00 a.m. ** Last Modified: Tuesday, January 6, 2009 at 8:11 a.m.
Vacancy rates in office buildings exceed 10 percent in virtually every major city in the country and are rising rapidly, a sign of economic distress that could lead to yet another wave of problems for troubled lenders.
With job cuts rampant and businesses retrenching, more empty space is expected from New York to Chicago to Los Angeles in the coming year. Rental income would then decline, and property values would slide further. The Urban Land Institute predicts 2009 will be the worst year for the commercial real estate market “since the wrenching 1991-1992 industry depression.”
I have not done a commercial inspection in a month…but a realtor called yesterday and wanted to know how much I would charge to inspect such and such address…hmmm…I just inspected that a couple months ago…so I give him a cheap price, figure the most it could take with the report in my hand 2-3 hours…I told him $1339.00…OH MY GOD, THAT IS WAY TO HIGH, he says----:lol:
This is 18,000 sq ft now—:shock:
I guess he got somebody else to do it from scratch for less if you can imagine that…I think I charged $3,779.00 the first time, major systems and components only, I was in and out of there in 6 hrs. the first time.
six hours on site, plus 3 report plus travel etc looks like you made over $300 per hour the first time…
I wish the market would allow that here, home inspection fees are not too bad here compared to many cities but commercial is either not inspected or probably done cheap. I loose most all commercial jobs due to price.
I have a bid in for a condominium complex with 33 units. They are thinking they only want about 8 units inspected. I quoted them a little under $8,000 for that and they seemed to like the numbers. My proposal went to the PMG today for approval.
Got another call this morning to inspect a take out diner with a ling space over it. That is about $3,500 square feet and they do not want the cooking equipment inspected, just structural and utilities. Quoted $550.00 for that one and will be doing it early next week.
Commercial work isn’t completely dead, but it sure has slowed down considerably since last summer.
Bruce & Scott, it has come to a stand still here, there are more businesses going OUT of business, then moving, expanding, or simply starting a new venture.
Same in CA…although I did do a quote for a 22 unit apartment complex last week, and a strip mall Monday. neither have responded to my proposal. I guess they got Joe the inspector to do it cheaper. What a shame.
Same here, can’t believe the amount of available space, in particular: retail space most strip malls have major spaces for let, Auto dealers, new and used folding like cheap magazines on Route 19 (our major throughfare), even hotels and motels are going dark in my area.
I’m told that tourism is down as much as 50% this year.