General Growth Properties Inc (GGP) filed for Chapter 11 Bankruptcy today. This is further evidence that commercial real estate is finally going to get hit hard, just like the banks and homebuilders. Retailers have been struggling for months and they're finally starting to default on their lease agreements.
The economic crisis has been slow to hit retail, hotels, and office buildings but reality is finally setting in... without the ability to refinance major debt that's due there's no way for commercial real estate companies to get out of this crisis unscathed. Welcome to the domino party.
This is just the beginning of another bubble poised to burst. Read more here.
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