2nd Largest Mall Owner Tanks

[falcon]

The second largest mall owner in the US has announced bankrupcy. Is this the beginning of the commercial real estate slide?


http://news.yahoo.com/s/nm/20090416/bs_nm/us_generalgrowth_bankruptcy;_ylt=AkfRjekE4tsbyb_vo Ik39oWs0NUE;_ylu=X3oDMTJ0c2M2MTdxBGFzc2V0A25tLzIwM DkwNDE2L3VzX2dlbmVyYWxncm93dGhfYmFua3J1cHRjeQRjcG9 zAzYEcG9zAzE0BHNlYwN5bl90b3Bfc3RvcnkEc2xrA3NlY29uZ C1sYXJnZQ--

NEW YORK (Reuters) "“ General Growth Properties Inc, the second-largest U.S. mall owner, declared bankruptcy on Thursday in the biggest real estate failure in U.S. history.

Ending months of speculation, General Growth, along with 158 of its 200-plus U.S. malls, filed Chapter 11 while it tries to refinance its debts.
But the ongoing global financial crisis made it impossible for General Growth to restructure outside of bankruptcy and could signal further troubles for other financial institutions who are General Growth creditors.

[James B]

I think it's past the start of this problem. FOX Business was talking about this last week as was Beck. Can't believe the savior is not going to bail them out.

[DougMD]

This is the beginning of the commercial real estate market going under. They've been under stress, and are just now closing in on bankruptcy. Expect these to escalate. See Gerald Celante on youtube, where he predicts this bust will make the housing bust seem like peanuts.

[Fieldmouse]

I call that great news. Now maybe a few of our local malls will shutdown and my wife won't spend so fricking much money.

[C. Davis]

ORIGINAL: Fieldmouse

I call that great news. Now maybe a few of our local malls will shutdown and my wife won't spend so fricking much money.

That reminds me of a time with the company I used to work for. We were having conference calls every quarter. We discussed what was selling, what was not.We were looking for ideas tohelp improve sells, cut cost, and to come up with overall ideas to improve business. I was getting killed because the company had cut back on it's advertising budget, and they were looking for "smarter" ways to advertise. My sales, and I believe the whole companies sales were slumping because of it. I got mixed reaction when I made the comment that advertising is expensive...very expensive.Especially if your wife can read.

C. Davis