The irony is commercial developers and construction lenders had been relatively disciplined in the recent run up. There was little pure spec office development. It was hard to build new hotels. Big projects especially were difficult to finance even when lenders were throwing money at just about anybody with their hand out.

But that doesn't matter now. Land values continue to drop while prospects for meeting project proformas have been shattered. Prime office tenants–financial companies, law firms, media companies–chop bodies left and right and vacancies shoot up. The always volatile hotel business suffers through a particularly sharp decline. Anybody with a spanking new project ready to open must be under water.

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