NEW YORK, NY -- (Marketwire) -- 01/16/13 -- For the last several years, the U.S. economy has existed in a state of constant tumult -- a state that many economic pundits have labeled the "Great Recession." With tentative signs of recovery beginning to emerge, many of these same experts are beginning to look back and assess the true impact of the recession on different parts of the economy, including the residential and commercial real estate sectors. According to a recent article in the Portland Business Journal, however, this is a tricky evaluation to make, as the recession did not impact the commercial real estate sector in quite the same way that it did residential real estate. The article has won the attention of David Lichtenstein, a commercial real estate professional; he has responded to the article with a new statement to the press.
"The impact of the Great Recession on the residential housing market has proven extreme, and has been well-documented," says David Lichtenstein, in his new press statement. "As this article rightly points out, however, the impact on commercial real estate has been on an entirely different scale -- and while there is no denying that commercial real estate has been harmed, there is also plenty of evidence to show that the impact was not nearly as severe as it was in the residential market."
David Lichtenstein's comments are affirmed by the Portland Business Journal article, which notes that, despite various economic pressures, the commercial real estate sector never folded in the way that many expected it to. While rents and occupancies decreased, the decrease was not to the same extent as in past recessions. "Additionally, rents are just beginning to approach their pre-recession rates," adds Lichtenstein.
The article continues by pointing to the fact that commercial building prices never collapsed.
While the number of buildings sold dropped significantly -- by 90 percent, compared to the high points in 2007 and 2008 -- drops in prices were temporary. The article claims that sellers simply did not want to "part with their buildings unless they absolutely had to sell."
"Commercial real estate has experienced plenty of ups and downs over the past few years, but, with the benefit of hindsight, we now see that one of the defining characteristics of the commercial real estate sector is its resilience," concludes David Lichtenstein.
David Lichtenstein is a commercial real estate development and acquisition expert with years of experience; he has served with The Lightstone Group, an organization he founded, since 1988. Lichtenstein's work in this field has been heralded by many as truly pioneering.
David Lichtenstein is a professional with years of experience and immense expertise in the fields of real estate acquisition and development. From the formation of The Lightstone Group in 1988, Mr. Lichtenstein has consistently pioneered in the manner in which he has built the company's portfolio of assets, both in terms of financing and in his view of creating property value. Lichtenstein is also an investor in biotechnology, as well as an advocate on behalf of various medical schools and colleges.
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