US at juncture

The economy of US is facing the worst crisis in this decade and this reality is affecting the markets to a large extent. Yes this is true and the ongoing economic recession has affected the mighty US economy along with the rest of the world. Do you think that only a few sectors of US have become affected? Well, if you think so, it’s the time for you to come out of this false notion. Almost each sector is affected. The property market of the country is also affected since the other sections of the market are licking the dust. Don’t you believe this? Go through the following to know better.

Which sector maintains the best direct relation with the population? It’s the job sector and any upheaval in this sphere affects people directly. The reduction in the number of jobs in any country indicates the worsening condition of the economy and the disastrous effects on others. Don’t you think that less jobs curtails the demands for office space, retail along with hotel space? This is inevitable and thus reduces the demand of the commercial property to a great extent. The same has happened in US also as employment is the driving force for all forms of commercial spaces.

Well, it’s a reality that the U.S. commercial property that ranges from office buildings, shopping centers, apartment buildings, hotels to warehouses, has been dealing with critical situations like stringent credit markets. This situation along with reduction in interest rates and large numbers of job losses is aggravating the US recession. It should be remembered that till now the total amount of lost jobs is 1.2 million and about 40% in this list used to work as employees in offices.

One simple example may depict the clearest picture. The office space in Manhattan is of 395 million square feet. It happens to be the largest in the country and the majority of the spaces are occupied by the comapanies of the financial industry since they are high priced. But even Manhattan is facing the crisis. There is a shortage in the demand for office space here too. Do you need any more fitting example?