Here’s the basics. Roughly $400b. worth of commercial mortgages and loans will come due this year. Banks are already pulling back lending in the sector and demanding higher interest rates on any deals they do complete. Retailers are only going to take in less money as the economy contracts.
See where this is headed?
Lots of empty strip malls, hotels, and yes, even, transit oriented development. Not a few bankruptcies either. This, in turn, makes 2010 the crushing budget year for localities used to ever-growing property tax revenues.
Can you guess where they are headed?
