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Double-Bubble Trouble in Commercial Real Estate

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Josef Ackermann, chief executive officer of Deutsche Bank AG, summed up the debate over the global economy at a meeting I recently attended: It’s either the beginning of the end or the end of the beginning.

In taking stock of the economic slowdown, most economists have their eyes on the U.S. residential housing market. Many of those expecting further declines are focused on rising foreclosures and falling home prices, which according to the S&P/Case-Shiller Composite-20 City Home Price Index are down 12.7 percent from a year earlier.

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