Comments about ‘Commercial real estate poised for rebound’

sounds promising

I'll believe it when I see it. Here's why: Unless Utah's commercial market operates in a vacuum, national experts expect increases in commercial foreclosures commencing in 2010 and extending through half of 2011. Banks aren’t eagerly making loans on extant, completed high-risk land deals; especially when they can borrow from the government at 0% and then loan to the government at 3% with little to no risk. Moreover, there are currently high vacancies and values will decline with increased foreclosures and increased inventories. By way of example, on our projects, banks became shy to make commercial mortgages post construction completion. It was difficult even finding hard money for that cause. Somebody is selling a rosy outlook that in reality will not translate into jobs and recovery, unless the national experts are wrong.

Sleuth has it right. That being said, "the national experts" usually have it wrong, so it depends on which ones you're listening to.

I would be more inclined to rely on independent third parties absent of any political or financial bias or interest in the outcome of their research and reports. Such third parties tend to be political and economic atheists; meaning that they simply report objective, value-free research rather than letting their results be dictated by what they believe should be true or what's best for community. In contrast, local "experts" have an interest and possibly a conflict.

Furthermore, where is the development capital going to come from if not the banks? As I said above, unless commercial development Utah operates in a vacuum using mainly local capital, it doesn’t make sense that there will be a commercial real estate rebound. What’s more, commercial real estate in Utah would be austere at best if not for the billions of dollars poured into the economy by the LDS Church City Creek Project.