SOS For Commercial Real Estate Industry

December 24, 2008
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The impending maturity of the $6 trillion worth of debts incurred for real estate investments including office buildings, hotels and shopping malls has forced the commercial real estate industry to seek help from the United States government. The industry’s big players have already met with the Treasury Department and Federal Reserve officials, congressional leaders and the transition team of President-elect Barack Obama to plea their case.

Industry leaders said $160 billion worth of commercial debts will fall due next year while $530 billion more will fall due in three years. The properties financed by these debts are in danger of foreclosure or even bankruptcy considering that the owners will have a…

Boston’s Hancock Tower losing tenants

December 18, 2008
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Even the iconic Boston City Hancock Towers has not been spared from the real estate woes bugging the nation.  The Hancock Towers is the latest casualty of an economic slump which forced most of its tenants to vacate their offices in exchange for more affordable facilities.

During these times, companies including the locators of Hancock Towers find it more practical and cost efficient to locate in more modest locations.  It is also during these times when most landlords reduce their rents to fill in vacant spaces.
This recent happening is ironic considering the city’s bid to encourage high-end construction.

The decrease in the number of tenants plus the lowering of office space rents…