Commercial Real Estate Didn't Boom and Bust. Is This Why?

Workers do welding at the World Trade Center construction site in New York on Sept. 7, 2012 Photograph by Jin Lee/Bloomberg

National Association of Real Estate Investment Trusts
When the U.S. housing market boomed and busted in the past decade, commercial real estate was comparatively placid. Prices were more stable, there was little overbuilding, and bankruptcies never soared. The question is why. A research paper attributes the stability of commercial real estate at least in part to the “civilizing influence” of real estate investment trusts, which are a bigger presence in the market than they are in housing.

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