Empty offices are on the rise](http://www.heraldtribune.com/article/20090106/ARTICLE/901060363/2107/BUSINESS)
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.”