--- title: Is 2018 The Year Commercial Real Estate Prices Begin to Crater? description: All signs seem to indicate that 2018 will be the year in which Commercial Real Estate (“CRE”) prices begin to crater and continue doing so for the indefinite future. image: https://blog.goosmannlaw.com/hubfs/Blog_Images/2018/Real%20Estate.jpg --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - [Divorce & Family Law](https://goosmannlaw.com/divorce-family-law/) - [Employment](https://goosmannlaw.com/employment-law/) - [Environmental, Health & Safety](https://goosmannlaw.com/health-safety/) - [Estate Planning](https://trustlawcounsel.com) - [Gestational Surrogacy & Adoption](https://goosmannlaw.com/gestational-surrogacy-adoption/) - [International Law](http://goosmannlaw.com/international-law/) - [Litigation / Trial Law](https://goosmannlaw.com/litigation-trial-law/) - [Local Counsel](https://http://goosmannlaw.com/local-counsel/) - [Mergers & Acquisitions](https://goosmannlaw.com/mergers-acquisitions/) - [Rapid Response](https://goosmannlaw.com/rapid-response/) - [Industries](https://goosmannlaw.com/industries/) - [Agribusiness & Cooperatives](https://goosmannlaw.com/agribusiness-cooperatives/) - [Construction](https://goosmannlaw.com/construction/) - [Cyber Law and Telecommunications](https://goosmannlaw.com/cyber-law/) - [Education](https://goosmannlaw.com/education/) - [Health Care](https://goosmannlaw.com/health-care/) - [Manufacturing](https://goosmannlaw.com/manufacturing-law/) - [Multifamily Housing](https://goosmannlaw.com/multifamily-housing-law/) - [Non-Profit & Tax Exempt Organizations](https://goosmannlaw.com/non-profit-law/) - [Real Estate](https://goosmannlaw.com/real-estate/) - [Transportation](https://goosmannlaw.com/transportation/) - [Tribal](https://goosmannlaw.com/tribal/) - Our Firm - [Firm News](https://blog.goosmannlaw.com/firm-news) - Careers - [Attorneys](https://goosmannlaw.com/careers/attorneys/) - [Administration](https://goosmannlaw.com/careers/administration/) - [Internships](https://goosmannlaw.com/careers/internships/) - [Client Testimonials and Results](https://goosmannlaw.com/our-firm/client-testimonials-and-results/) - [Culture, Diversity, and Community](https://http://goosmannlaw.com/our-firm/culture-diversity-and-community/) - [Women-Owned Business](https://goosmannlaw.com/our-firm/women-owned-business/) - [Associations & Memberships](https://goosmannlaw.com/associations-memberships/) - [Firm History](https://goosmannlaw.com/firm-history/) - Blogs - [CEO Law Review](https://blog.goosmannlaw.com/ceo-on-your-side) - [Construction Lawyer](https://blog.goosmannlaw.com/construction-lawyer-on-your-side) - [Cyber Lawyer](https://blog.goosmannlaw.com/cyber-lawyer-on-your-side) - [Deal Maker](https://blog.goosmannlaw.com/deal-maker-on-your-side) - [Divorce Docket](https://blog.goosmannlaw.com/divorce-lawyer-on-your-side) - [Food for Thought](https://blog.goosmannlaw.com/agricultural-lawyer-on-your-side) - [HR Legal Insider](https://blog.goosmannlaw.com/human-resources-on-your-side) - [Law Doc](https://blog.goosmannlaw.com/health-lawyer-on-your-side) - [Paralegal Review](https://blog.goosmannlaw.com/paralegal-review/) - [Real Estate Lawyer](https://blog.goosmannlaw.com/real-estate-lawyer-on-your-side) - [Risky Business](https://blog.goosmannlaw.com/risk-manager-on-your-side) - [The Banker’s Suit](https://blog.goosmannlaw.com/banking-lawyer-on-you-side) - [Trial Law Review](https://blog.goosmannlaw.com/trial-lawyer-on-you-side) - [Trust Law Counsel](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side) - Resources - [COVID-19 Resource Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - [Podcast](http://podcast.goosmannlaw.com/) - [Videos](https://goosmannlaw.com/videos/) - [FREE eBooks & Tools](https://goosmannlaw.com/free-ebooks-tools/) - Contact Us - [Office Locations](https://goosmannlaw.com/locations/) - [Sioux City Law Firm](https://goosmannlaw.com/locations/sioux-city-law-firm/) - [Sioux Falls Law Firm](https://goosmannlaw.com/locations/sioux-falls-law-firm/) - [Omaha Law Firm](https://goosmannlaw.com/locations/omaha-law-firm/) - [Spirit Lake & Spencer Law Firms](https://goosmannlaw.com/locations/spirit-lake-and-spencer-law-firm/) - [Real Estate Closings Office](https://goosmannlaw.com/locations/real-estate-closing-office/) - [Submit a Testimonial](https://goosmannlaw.com/submit-a-testimonial/) - [Sign Up for Our Newsletter](https://goosmannlaw.com/sign-up-for-our-newsletter/) - [Pay Online](https://goosmannlaw.com/pay-online-3/) - [  (855) 843-4531](tel:855-843-4531) ![](https://blog.goosmannlaw.com/hubfs/Blog_Images/Lockbox%20Lawyer/close-button.png) [tel:855-THE-GLF1](tel:855-THE-GLF1) [Banking](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking) [commerical real estate](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/commerical-real-estate) # [Is 2018 The Year Commercial Real Estate Prices Begin to Crater?](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/is-2018-the-year-commercial-real-estate-prices-begin-to-crater) By [Elizabeth M. Lally](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/author/elizabeth-m-lally)   |  8, January 2018 [READ NOW](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/is-2018-the-year-commercial-real-estate-prices-begin-to-crater) [Read Post](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/is-2018-the-year-commercial-real-estate-prices-begin-to-crater#article) [![](https://blog.goosmannlaw.com/hs-fs/hubfs/Elizabeth%20M%20Lally%20Headshot_Close-2.jpg?width=60&name=Elizabeth%20M%20Lally%20Headshot_Close-2.jpg)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/author/elizabeth-m-lally) [Elizabeth M. Lally](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/author/elizabeth-m-lally)  Tags: [Banking](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking) [commerical real estate](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/commerical-real-estate) ## All signs seem to indicate that 2018 will be the year in which Commercial Real Estate (“CRE”) prices begin to crater and continue doing so for the indefinite future. The reasons for this are two-fold. First is the rising delinquency rates of CRE loans. For example, in Omaha, NE between 5% to 10% of CRE loans were delinquent as of September 2017, and in Kansas City, MO at least 25% of CRE were delinquent.  Second is the enormous increase in retail borrowings that will come due starting in 2018 and continuing through 2025. Specifically, $100M worth of retail borrowings came due in 2017, and 18 retailers filed for Bankruptcy with many others announcing significant store closings. In 2018, the need for retailers to refinance this debt will really kick in with as much as $1.9B in high-yield retail debt coming due. From 2019 to 2025, the annual average retail debt that will come due will be nearly $5B. With over 8,000 store closures announced in 2017, rising delinquency rates in CRE loans, and a coming surge in the amount of retail debt coming due it only seems reasonable to think that the market will be flooded with distressed CRE and a subsequent collapse in CRE prices in 2018 and beyond.  For more information, [visit HERE](https://www.bloomberg.com/graphics/2017-retail-debt/;%20http://www.businessinsider.com/retailers-bankruptcy-filings2017-9/#toys-r-us-30;%20https://www.forbes.com/sites/bisnow/2017/11/10/2018-will-be-significantly-worse-for-debt-laden-u-s-retailers/#5d7a113c7f84). Call our Omaha law firm, Sioux City law firm, or Sioux Falls law firm today!    [![CONTACT US](https://no-cache.hubspot.com/cta/default/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9) ### Select Different CTA for each Post from Blog Editor [![New Call-to-action](https://no-cache.hubspot.com/cta/default/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422) ### Subscribe Our Blog Thanks for submission!! - Recent - Popular ### Posts by Topic - [Banking (34)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking) - [Bankruptcy (26)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/bankruptcy) - [COVID-19 (15)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/covid-19) - [Banking Litigation (12)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/banking-litigation) - [Chapter 11 Bankruptcy (12)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/chapter-11-bankruptcy) - [Subchapter V (9)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/subchapter-v) - [Bankruptcy Court (6)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/bankruptcy-court) - [Student Loan Debt (3)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/student-loan-debt) - [Foreclosure (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/foreclosure) - [PPP Loans (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/ppp-loans) - [Small Business Owner (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/small-business-owner) - [small business (2)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/small-business) - [Agricultural News and Insights (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/agricultural-news-and-insights) - [BNPL (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/bnpl) - [Business Law (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/business-law) - [CARES Act (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/cares-act) - [Chapter 7 Bankruptcy (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/chapter-7-bankruptcy) - [Creditor (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/creditor) - [Cryptocurrency (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/cryptocurrency) - [Deal Gone Bad (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/deal-gone-bad) - [Farm Bankruptcies (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/farm-bankruptcies) - [Farm Forecast (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/farm-forecast) - [Forbearance (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/forbearance) - [Franchise (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/franchise) - [Intellectual Property (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/intellectual-property) - [Judgment (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/judgment) - [Lenders (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/lenders) - [Social Security Benefits (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/social-security-benefits) - [Unpaid Legal Bills (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/unpaid-legal-bills) - [commerical real estate (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/commerical-real-estate) - [evictions (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/evictions) - [liquidation (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/liquidation) - [omaha law firm (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/omaha-law-firm) - [online purchasing (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/online-purchasing) - [subchapter 5 bankruptcy (1)](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/topic/subchapter-5-bankruptcy) DISCLAIMER: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. By visiting this website, blog, or post you understand that there is no attorney client relationship between you and the Goosmann Law Firm attorneys and website publisher. No information contained in this post should be construed as legal advice from Goosmann Law Firm, PLC, or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction. #### Let Us Know What You Thought about this Post. Put your Comment Below. [Previous Post](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/nebraska-court-of-appeals-issues-opinion-regarding-constructive-service-of-process-and-default-judgments-in-case-concerning-unpaid-legal-bills) ##### [Nebraska Court of Appeals Issues Opinion Regarding Constructive Service of Process and Default Judgments In Case Concerning Unpaid Legal Bills](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/nebraska-court-of-appeals-issues-opinion-regarding-constructive-service-of-process-and-default-judgments-in-case-concerning-unpaid-legal-bills) [Next Post](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/cre-leases-and-continuous-operations-clauses-can-landlords-force-tenants-to-remain-in-business) ##### [CRE Leases and Continuous Operations Clauses: Can Landlords Force Tenants to Remain in Business?](https://blog.goosmannlaw.com/banking-lawyer-on-you-side/cre-leases-and-continuous-operations-clauses-can-landlords-force-tenants-to-remain-in-business) ### Contact Info **Sioux City Location** P. 712-226-4000 F. (712) 224-4517 **Sioux Falls Location** P. (605) 371-2000 F. (605) 275-2039 **Omaha Location** P. (402) 280-7648 F. (402) 505-3967 --- [Disclaimer](http://goosmannlaw.com/list-all-blogs/disclaimer/) | [Privacy Policy](http://goosmannlaw.com/privacy-policy/) ### Locations **Sioux City Location** 410 5th Street Sioux City, IA 51101 **Sioux Falls Location** 5010 S. Minnesota Avenue, Suite 100 Sioux Falls, SD 57108 **Omaha Location** Advent Building 17838 Burke Street, Suite 250 Omaha, NE 68118 ![Goosmann](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/Lockbox%20Lawyer/goosmann-white.png?width=250&name=goosmann-white.png "Goosmann") Goosmann Law Firm is a FULL SERVICE LAW FIRM with locations in Sioux City, Iowa, Sioux Falls, South Dakota, and Omaha, Nebraska. Goosmann Law attorneys are licensed to practice in Iowa, Nebraska, South Dakota, and North Dakota. Their attorney team's practices and industries include but are not limited to Agribusiness and Cooperatives, Banking and Finance, Bankruptcy, Restructuring and Workouts, Business, Construction, Cyber Law and Telecommunications, Divorce and Family Law, Education, Employment, Environmental Health and Safety, Gestational Surrogacy and Adoption, Health Care, Litigation and Trial Law, Manufacturing, Mergers and Acquisitions, Municipal, Nonprofit and Tax Exempt Organizations, Real Estate, and Transportation, Tribal, Wills, Trusts, Estate Planning, and Probate Law. Goosmann © Copyright 2017