These days, we are all hearing from the "experts" and the "Feds" that the recession is ending. But – do those of us out here "in the trenches" agree that this is true?
Statistics are one thing, but the reality of the situation is another thing entirely. In my world – the world of commercial real estate – Q2 2009 financial results were not positive. Managed networks, such as NAI Global Real Estate Services, made small positive advances. Independently-owned real estate firms, such as NAI Commercial Jacksonville, prospered, and salespersons who shouldn’t have even been in the commercial real estate business in the first place, quit their firms in droves for the perceived “security” of salaried jobs – and that’s a good thing.
Because Jacksonville’s office market is dominated by financial services/business back-room/account reconciliation/service sectors, a lot of space is becoming available as these business sectors consolidate. These consolidations should lead to new real estate opportunities that can serve to kick-start a recovery.
If the recession is indeed ending, it means we have already "bottomed out", but because businesses have "figured it out", commercial real estate’s hard assets must be dealt with. We will be crawling along the "bottom" for a while longer.
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