Empty Storefronts Repurposed

If you've been following the financial media, you know that the commercial real estate sector is in trouble. Its basically following the trajectory that the residential real estate market did. Although, to be fair, the commercial real estate mortgage backed securities (MBS) market is much smaller than the residential MBS market is. Regardless, it looks like banks are poised to take another hit thanks to loan defaults. Of course, this all translates into empty storefronts so communities everywhere end up taking a hit.

Blogger Matthew Yglesias wonders why down markets don't result in unused urban storefronts being rented. He concludes that regulation might be partly responsible. Megan McArdle over at the Atlantic responds to Yglesias's post. Interestingly, she mentions a few reasons why malls might fare better than urban storefronts in this recession.

How are some empty stores being repurposed? Some are being used as street-front ad space. Others are being transformed into churches. Pretty interesting stuff.

How is retail doing in your community? Noticed any major changes or transformations?

Quick Link: Suburb Developers Take A Hit

Over at the Financial Armageddon blog, the author has put up an interesting post about the fate of suburb developers during this recession. The results shouldn't be surprising for anyone who has followed this recession, but it makes for an entertaining read nonetheless. One quick quote from the end of the article he references in the blog post:

Hedlund says his forecasts for 2010 include the possibility that the year could be worse than 2009.

"In the meantime, communities may have trouble maintaining the infrastructure on unused land," he added. "Eventually, many lots will have to be bulldozed."

By the way, I don't agree with everything the author of Financial Armageddon writes, far from it. A lot of what he writes concerning the finer points of finance is also over my head. Nonetheless, you'll usually find something interesting over there.