If There's Any Chance You Think Real Estate is Better, it's Not

Hopefully you’re not betting on a quick turnaround in commercial real estate.

Office vacancies in the United States have just risen to a five-year high due to the poor economy. Businesses that have been slashing jobs are now also ditching the empty office space left behind.

The office vacancy rate has increased from 13.7 percent a year ago to a current rate of 16.5 percent. Over the same period of time, the rates charged for rent have fallen 18.5 percent, the most precipitous decline in 14 years.

More specifics available from Bloomberg fully flesh out the poor outlook for commercial real estate.

The Daily Reckoning