The commercial real estate slump that is following residential happens in a market that not many people read or hear about. The NY Times covered it last week:
"The percentage of [commercial real estate] loans in default nationwide jumped to 7.3 percent through September 2008, compared with 1 percent in 2007, according to data tracked by Reis Inc., a New York-based real estate research company.
Construction generated more than $30 billion in economic activity in New York last year, said Louis J. Coletti, the chief executive of the Building Trades Employers’ Association. The $5 billion in canceled or delayed projects tracked by Mr. Coletti’s association include all types of construction: luxury high-rise buildings, office renovations for major banks and new hospital wings."
I don't feel like being negative so while this is all bad it's not 100% bad. The engine of the U.S. economy of late has been small business, particularly in the area of job creation. New businesses are going to find leases a lot more affordable in the coming years.