Nation of Pessimists

Sometimes I get email from readers gently suggesting that I'm being too optimistic. I just-as-gently remind them that the title of this piece is "Good News Friday," so I'm more-or-less obligated to look on the bright side. But beyond the obvious headwinds, I am genuinely optimistic about the prospects for the economy and commercial real estate, and I wonder sometimes why there is such a level of pessimism.

Reading The New York Times this morning, I came across the following passage in an article with the headline "How to Tell A Nation Is at Risk":

"In Washington, nobody seems to want to see good news... The left wants more stimulus spending, and sees economic optimism as playing into the hands of its opponents. The right wants... large Republican gains in November, and sees economic pessimism as in its best interests."

I'm not implying that politics are the main reason for the pessimism. The strength of the economic recovery, high unemployment and burgeoning public debt are legitimate topics for debate and concern. But I think sometimes the pessimism is more intense than warranted by the economic indicators, which, taken as a whole, are pointing toward a sluggish recovery. Click here to read the full article.

In commercial real estate, leasing markets are turning the corner. Click here to read about it in Building Knowledge, Grubb & Ellis' blog.

Commercial Real Estate Vacancy Rates

Robert Bach
Senior Vice President, Chief Economist
Grubb & Ellis