Collapse in commercial market
Should inspectors be worried about foreclosures involving commercial property? This article in the August 1, 2009 edition of The Economist suggests that this will be the next area of concern. Many local governments are facing vacant storefronts. Will commercial owners walk away from their buildings too? It’s probably best to prepare for the worst and hope for the best. Personally, I’m hearing stories of banks refusing to loan money to commercial building owners who have always been good borrowers because the banks are trying to exit the business of dealing in commercial real estate. This is leaving many owners in terrible financial condition. They have equity tied up in the building they could use to pay bills but can’t refinance to get access to the cash.