Depressing Deutsche

Some really depressing stuff from Richard Parkus, head analyst of commercial mortgages for Deutsche Bank Securities.

From the article:

"Rents will be back to where they were in 2017," Parkus said. Building prices also will take six to eight years to recover, he said.

"We are not only not approaching stability, we are at a period of maximum deterioration," Parkus said.

Given Mr. Parkus' comments, I thought now would be a great time to keep in mind the words of the sixth century B.C. poet Lao Tzu, who said, "Those who have knowledge don't predict. Those who predict don't have knowledge."

Let's hope Lao Tzu is right about Mr. Parkus. Otherwise, the next six to eight years could be very rough for many, many commercial real estate owners.