Commercial real estate in New York City will be hit, and maybe some around the financial centers in Boston, Chicago, Los Angeles and San Francisco.
I expect commercial real estate in energy centers, like Houston, Dallas, Denver, Calgary will do well, along with mining and resource centers like Toronto and Vancouver. Export centers, like Silicon Valley, Seattle, Miami and the rest of Los Angeles should do well.
Most of the commercial real estate properties have long term mortgages, often at fixed rates. The short term liquidity crunch
may push prices down for a year, but inflation will push commercial real estate prices the other way. Except for New York, Detroit, and New Orleans, of course. |
