Commercial real estate in real trouble

Not news to us, as the predicted bankruptcy of the General Growth Properties REIT was as inevitable as GM's and Chrysler's. But Deutsche Bank's analysis could be even grimmer than mine, if that's possible.

http://moneynews.newsmax.com/economy/commercial_real_estate/2009/06/23/228099.html

Retail Shopping Mall Giant Files for Bankruptcy

As we predicted, General Growth Properties filed for bankruptcy, the largest commercial real estate REIT to collapse in US history. GGR holds some of the most prime location properties, but couldn't make payments on their $27 billion debt.

I expect more retail shopping mall REITs to go under, crushed by mounting debt. Banks will take another hit with bad loans on commercial real estate, just as residential mortgage foreclosures appear to stabilize.