commercial activity

The general slowdown in the U.S. economy has begun to have an impact on commercial real estate markets. After posting a record $427.2 billion in commercial transactions in 2007, it should come as no surprise that investment in commercial properties is well off the pace of last year. Indeed, tight credit availability has significantly slowed the volume of commercial real estate transactions.

The slowdown in commercial activity was expected. Commercial activity follows economic activity, and the downturn in the economy which began in late 2007 has yet to end. Add to that the turmoil in financial markets resulting from the subprime mortgage meltdown, continued rising oil prices and job creation in negative territory since the beginning of the year, and it is no wonder that activity in the commercial sector has eased.