The credit bubble enabled a massive overbuild in the scale of housing as well as the retail and commercial sector. The mean reversion began in 2008 and then was stalled for a time by excess liquidity driven by QE and indiscriminate investor flows looking for yield. The end result has been the addition of even more excess capacity which is now having to shutter and repurpose.
As anyone can see in the growing retail and commercial vacancies all around us, the downsizing wave is now picking up pace. It has much further to go. See: Sears warns of ‘substantial doubt ‘about company’s future.
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