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Commercial real estate slows down a bit

AlfredSokol said: "Commercial real estate is slowing down a bit, albeit nowhere near like [url=http://ap.google.com/article/ALeqM5huijJeWLmJ7y4h0tE6oQeKqHLCDQD8SDP4DG0]residential[/url] [quote] Construction spending on office buildings, shopping centers and other private, nonresidential projects jumped 15.2 percent in August, the Commerce Department said last month. There are some signs of slowing growth, analysts say, but nothing compared to the residential real estate market, where foreclosures and mortgage defaults are still rising rapidly, mainly from subprime mortgages extended to risky borrowers. Most economists forecast further declines in home sales and prices, making it "the most significant current risk to our economy," Treasury Secretary Henry Paulson said last week. The commercial market has not been dragged down by the residential mortgage mess because for the most part, buyers and sellers are more sophisticated, and they have more financial flexibility and resources to ride out credit-market turmoil, experts said.[/quote] I would guess that part of the reason is because the "little guy" investors don't get involved in commercial real estate the way they do in residential. Anyone have any theories as to why commercial real estate is going strong?"