Commercial slump could be less severe than housing bust 

The commercial real estate market is only facing “a once-every-25-year flood, not the once-a-century inundation facing the nation’s housing market,” the Wall Street Journal reports. The credit crunch caused by the subprime mortgage crisis has spilled over into the commercial market, slowing down sales and driving down property values. Tenants are benefiting, as developers offer deals to keep space filled. Some big property owners, like Harry Macklowe and Centro Properties of Australia, have been forced to sell properties to pay off creditors. But losses could be limited by a lack of overbuilding and the ability of most owners to keep up with their mortgages. As The Real Deal reports in this month’s issue, brokers say prices have fallen 5 to 10 percent since the credit crunch hit last June.