The worry that commercial real estate was the "next shoe to drop" goes back a long time, but after this additional data point, I think we're here. How banks and other financial institutions are hiding this level of damage has me scratching my head. Calculated Risk with the details:
From Dow Jones: Moody's: Commercial Real-Estate Prices Fall 7.6% In MayCommercial real-estate prices fell 7.6% in May ... The indexes are down 29% from a year ago and 35% from their October 2007 peak.According to Moody's, CRE prices fell in 8.6% in April (about 16% in two months).
Talk about cliff diving!