Commercial Real Estate Bubble
Another Real Estate Bubble?
Back in November 2016 I wrote an article about red flags that I saw pertaining to the United States commercial real estate market. If you missed that article here is the direct link: Real estate bubble 2017
Well, just this week I saw another red flag pertaining to the commercial real estate market. Yes, take a look at the photo to the left. I purchased an electronic device last Sunday from Amazon. I ordered it online about 8 o’clock in the morning on Sunday. As you can see from the bag, the online order form showed that it would be delivered between 12 and 2 PM (actually arrived at 12:30 PM) the same day. Now, as a prime member, there was no additional cost for this super quick delivery service.
I didn’t realize it at first, but the experience was so easy and so fast, I now believe that this is a definite danger for the large shopping malls. My article about the real estate bubble that I posted in November 2016 was about real estate limited partnerships (REITS) many of which invest in all types of commercial shopping centers and strip malls. So, for me personally, and I would venture to say probably quite a few other people, when ordering online, not only do you have the convenience and a very competitive price, but think of the time saved from having to go to the mall, find a parking space, fight the crowds and finally waiting at the checkout line before heading back home. Therefore, I really believe that this fast shipping service that Amazon has incorporated and I understand some other big online merchants are looking into, is going to spell big trouble for many shopping malls and thereby the REITS that invest in them.
