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“The case for true commercial real estate catastrophe, I think, is totally bogus,” Cramer said during Tuesday’s Mad Money. Just look at the relative success of Federal Realty Investment Trust.
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Wall Street pundits and the business press alike have been forecasting commercial real estate’s collapse for some time now. It looms, they say, like an end-of-days event that will erase any hopes we had for a full recovery, both in the markets and the economy. But Cramer’s seen little evidence to prove this.
If the industry were so near the precipice, then retail should have produced more failures than just Linens & Things and Circuit City, especially given the 10.2% unemployment rate and tight credit markets. There’d be more store-space vacancies, too.
But “money’s plentiful” for most real estate investment trusts, Cramer said, thanks to the market’s hunger for secondary offerings, and occupancy rates seem to remain high. He recommended the iShares Dow Jones US Real Estate Index Fund [ IYR 42.58 
-0.99 (-2.27%) ] as “the best way to get broad exposure to real estate investment trusts that have retail properties.”
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