Wednesday, January 14, 2009

Cliff Diving: Riverside – San Bernardino

The Wall Street Journal has a piece on the softening commercial real estate market in Riverside-San Bernardino. The money quote: "California's Inland Empire, the two-county region that stretches east of Los Angeles, has gone from a booming development smorgasbord to a basket case in a few short years."

Here is year over year employment change for this metropolitan area:


(Click on image for a larger version in a new window)

Employment growth in this market has been decelerating since 2004, and has been negative for more than a year now. CRE can’t do well in such an environment.

You can download a free report which provides similar information on 18 other markets here.