If you listen to Cramer commercial real estate is the place to be, he mostly points to the increase in certain equity prices in current trading to make his point along with some parallels drawn from the Savings and Loan Crisis. However, rising share prices are not indicative of a stable sector as the beginning of 2008 told us about the banks and the markets in general. Perhaps one reason why these commercial REIT’s are still doing so well is that there is that the shorts cannot short them.

There seems to be a shortage of shares to borrow which is highly unusual and, to my knowledge, this shortage of shares to short has never been a problem up until 2008. Either there are no shares to short because they have already been loaned out, unlikely because short interest in the S&P 500 has decreased 72%, or banks just do not want or are told to not lend shares, which is more likely. Either way, it is highly odd that there is a lack of shares with falling short interest. Regardless, commercial real estate is rife with problems and is a sector I would likely avoid for some time to come.