Real estate scenario has become a worrying factor

There is nothing new in it and a number of months have already passed after the commencement of downturn. Well, if you want to have something new, the new-fangled information is that the recession is going on in full swing and there is no chance of any early respite in the horizon. This becomes highly evident with the scene of empty storefronts and its gradual rise in the region of the Bay Area. This is not the scene of any particular city but has become common throughout the sphere of the United States of America.

Take for instance Oakland and its neighboring cities. Oakland was founded in 1852 and happens to be the eighth-largest city in the U.S. state of California along with the county seat of Alameda County. In these cities also the activities of the real estate is at an all time low and the vacant storefronts give the best expression of the economic situation to the outsiders. It has been learnt that the demolition teams are gearing up as a result and are getting busy by leaps and bounds.

According to the discretion of retail store consultant Helen Bulwik, “What we’re definitely going to see is more and more store closures.” “Refilling that space in the short-term is going to be virtually impossible. Then when you lose a store in a mall area, of course, it affects the other stores, and therefore there could be some additional fallout as a result of that.”

The latest available figures reveal that the rate of retail vacancy in the month of last September were 2.8 percent for San Francisco, 4.2 percent for San Jose, and almost 6 percent for Oakland. According to the experts, the market has aggravated further and the figure is now closer to 7 percent, if not more.

The same view was also expressed by the mayor of Emeryville, Richard Kassis, at a real estate conference, and stated that the loss of two major retailers in his town can be ideal eye-opener. He said, “It’s tough when you lose a Circuit City and a Home Expo, which also affects Oakland. That’s about $250,000 in sales taxes to the city of Emeryville alone.”