Congress Fears For $7 Tril Commercial RE Market


We've been talking about the precarious state of commercial real estate for some time. Now Congress is apparently getting nervous about it, too -- and the very real possibility that whatever is now passing for an economic "recovery" could be derailed rather quickly by a catastrophe in the nearly $7 trillion commercial real estate market in this country.

Democratic Congressman Paul Kanjorski from Pennsylvania joined with Republican California Congressman Ken Calvert Monday to send a letter of concern to both the U.S. Treasury Department and the Federal Reserve. In a broad (and rare) show of bipartisan support and concern, 77 other members of the House signed on to the letter.

On his website, Congressman Kankorski says, " The growing bubble in the commercial real estate industry has the potential to infect our economy and slow a recovery."