Why pavement maintenance contractors should be aware of their clients

Did the other shoe just drop? Analysts have been warning for months that the housing slump created by tight lending practices (on the heels of ridiculous lending practices) would eventually spill over into the commercial property sector. Well, that happened big time yesterday when General Growth Properties filed Chapter 11 to reorganize its operation -- and it will probably have to sell some properties. One of the largest mall owners in the country, General Growth owns more than 200 shopping centers in 44 states, including many high-profile locations such as Chicago's Water Tower Place and the Grand Canal Shoppes at The Venetian in Las Vegas (neither of which require much pavement maintenance). But many of their other holdings do include parking lots. And while this Chapter 11 filing doesn't necessarily mean pavement maintenance work for General Growth will disappear, it does mean more attention will be paid to monies spent. For pavement maintenance contractors this filing should be a caution: Make sure you know who you are doing the work for and who will be paying the bill. Hopefully General Growth will be the last property owner to be in this financial bind, but I wouldn't bet on it.

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