Circuit City to Go Out of Business That’s right, Circuit City has now gone bankrupt and is shedding 30,000 of its own workers directly. Of course, when a big outfit like Circuit City goes bankrupt they take more than just their own workers down with them. How many workers are involved in manufacturing the items that Circuit City sells?
This was the most interesting part of the report about Circuit City…
“It will bring to market a glut of big box spaces across the country,” said John Bemis, head of Jones Lang LaSalle Inc.’s retail leasing team. “It will have one of the largest impacts on big box real estate across the country.”
We’re going to see all these vacant ‘Big Boxes’ sprouting up all over America soon like the real estate toad stools they really are. Malls, too. Ugly America… Look at all the nature they wasted away.
The collapse of commercial real estate could be the next wave in this financial tsunami, although, I hope I’m wrong, with the continued retail meltdown. Ironically, one reason for the retail woes is Americans are turning to frugality and saving their money, which is a good thing for their personal financial health, but, not good for corporate financial health.
‘The 1,120,000 lost US retail jobs in 2008 are a signal that the second stage of the real estate bust is about to hit the economy. This time it will be commercial real estate–shopping malls, strip malls, warehouses, and office buildings. As businesses close and rents decline, the ability to service the mortgages on the over-built commercial real estate disappears.’
The above taken from commentary titled … The Second Stage
Another Real Estate Crisis is About to Hit
at http://counterpunch.com/roberts01222009.html