Long, well researched, article on the Phoenix commercial real estate market in Bloomberg.

As tenants abandon space, landlords are struggling to meet their obligations. Commercial properties with mortgage payments 60 days late or more rose to 8.5 percent as of August in Phoenix, up from 1.6 percent in March, data compiled by Bloomberg show.

My recollection is that commercial construction was unusually strong in 2006 and 2007 which was lucky because residential construction was tanking at the time. Now we’re in a period where both are down, although residential and commercial are at two different ends of their down cycles.