Commercial Real Estate - A Long Hard Road Back to an Ugly New Reality
4/2/2010
Abstract
For commercial real estate lenders and investors, the distressing headlines just keep coming.
In February, the Congressional Oversight Panel issued a special report predicting that Commercial Real Estate (CRE) losses expected over the next few years could overwhelm an already weakened financial system.
Of the $1.4 trillion in CRE loans due to mature now through 2013, nearly half the properties are expected to be “underwater” - meaning they are worth less than the amount owed. And, the Moody’s/REAL Commercial Property Price Index shows that property values have fallen 43.7% since their peak in 2007.
Commercial Real Estate - A Long Hard Road Back to an Ugly New Reality (170KB .pdf file)