by Steve P » Sun Jan 10, 2010 2:50 pm
I just read an article in the Minneapolis newspaper yesterday about how the commercial real estate "bubble" is in the process of going "bust"...A lot of small banks who were on the bench for the housing bust are now finding themselves very exposed as these comparatively "safe" loans go into default.
Since we moved to L'ville I've heard rumors of several instances of ridiculous rents driving restaurants (etc) out of business (Pig City BBQ comes to mind as the most recent)). While greed might be the primary cause for these (rumored) exorbitant rents, I'm wondering if perhaps some of these owners/developers aren't just mortgaged to the hilt...the end result being that they are passing their crisis on to the small business owner.
I dunno...just thinking out loud.
Stevie P...The Daddio of the Patio