I can’t help wonder whether other Metropolitan areas suffer from the same lack of information as Richmond. Specifcally, we are inundated by bad news from both residential and commercial real estate fronts. Our local paper publishes no fewer than 3 articles per week on the subject…albeit 99% residentially slanted. I admit that the articles by locals usually acknowledge that Richmond is suffering far less than the rest of the country, but I have to wonder why commercial real estate in Richmond is simply ignored. Using Yahoo’s and Google’s news aggregators, I read countless articles everyday about how the sky is falling in the real estate universe. Just now I read: http://www.ft.com/cms/s/2/b38090dc-a10c-11dc-9f34-0000779fd2ac.html. I would say that nearly EVERY article about the state of affairs in the commercial real estate industry deals with securitzed sales. That is, when journalists spew information at us about this and that, they gather it from national real estate investment firms, Wall Street, etc.
I have to ask though: HOW DOES THIS INFORMATION APPLY TO RICHMOND? How much of our commercial real estate market falls into the “securitized” arena? I submit that it’s a miniscule amount. That brings me back to the original point of this post: WHERE IS THE USEFUL INFORMATION? The public should be informed about how OUR markets are doing. I guarantee you the statistics on Richmond’s commercial real estate market bears little resemblance to what we’re hearing about the nation in general.
Update: http://www.virginiabusiness.com/edit/magazine/yr2007/dec07/cover.shtml
While there are pockets where commercial construction has slowed such as the Dulles corridor in Northern Virginia, overall commercial construction in Virginia remains healthy, says Steven Vermillion, chief executive officer of the Associated General Contractors of Virginia. Construction employment in Virginia in August was 252,300, which is not only 2 percent higher than last year, but Vermillion believes it is an all-time high for the state. “While much of what you read about the impact of the credit crunch on construction is negative, this is definitely not the case for commercial construction,” he adds. Projects recently breaking ground include the 360-acre One Loudoun, a 3-million-square-foot mixed-used project in Loudoun County, and a 1.3 million-square-foot industrial park in Suffolk. One key driver for the commercial real estate market is federal, state and local government agencies. “A good portion of commercial construction is with government entities for projects like schools, highways and sewage treatment plants, which aren’t as susceptible to credit issues as residential construction,” says Vermillion.