The Impact of the Global Financial Crisis on Commercial Real Estate

Barclays point out that office availability, a statistic that measures how much space is vacant combined with how much space will open up in coming months, hasn't climbed too dramatically. A drop in property prices, while bad for landlords and quite worrying for lenders, isn't really enough to spark a loan default. Bank of America's monthly fund manager survey shows that overall fund managers have already cut their allocations to commercial real estate. Their allocations to the sector are at the lowest level since the 2008 financial crisis.