Commercial Real Estate Loans Pose A Real Danger
Elizabeth Warren, chairwoman of the Congressional Oversight Panel for the Troubled Asset Relief Program, talks with Bloomberg’s Betty Liu about the outlook for community banks that have exposure to commercial real estate loans. Warren, speaking from Newton, Massachusetts, also discusses the need for so-called stress tests on community banks. Commercial real estate loans have potential to go sour and wreck the U.S. economy unless regulators prepare now, according to a report from the watchdog for the federal financial rescue program.
San Jose real estate lawyers
Commercial Real Estate Market Condition
Alexander Goldfarb, an analyst at Sandler O’Neill & Partners LP, talks with Bloomberg’s Lori Rothman about the outlook for the commercial real estate market. Goldfarb also discusses real-estate investment trusts (REIT) and the outlook for Vornado Realty Trust.
San Diego income property
Commercial Real Estate Downturn
Moody’s/REAL Commercial Property Index shows that the nation’s commercial real estate markets are now firmly experiencing a tremendous downturn with prices plummeting a whopping 28.53% on a year-over-year basis and a stunning 34.83% since the peak set in October 2007.
commercial real estate
Commercial Real Estate … The Next to be Bailed Out?
Just like residential real estate, commercial real estate is now experiencing higher foreclosures and exploding delinquency levels. REITs (real estate investments trusts) are already down more than 50% across the board and many are down 80%+.
George Soros says that it is “inevitable” that commercial real estate falls another 30%. Rents are falling, tenant bankruptcies are rising, there is tons of debt to be refinanced for which there is no market, so cap rates are rocketing and “ghost mall” has joined the recessionary lexicon. San Diego California real estate
Housing Demand … Will it Ever Come Back?
The demand for housing will never come back with the same unbridled momentum we saw in the years leading up to the collapse — nor do we want to see it return to such frothy levels. Indeed, foreclosures will continue and I feel very confident the contagion will bleed into commercial markets in coming months.Commercial Real Estate Trouble in 2009
U.S. Bancorp (USB) Q408 conference call the bank reiterated that it is the highest rated large U.S. bank: We now are alone as the most highly rated bank of our large bank peer group with a AA rating and a stable outlook with S&P with an AA2 and stable outlook with Moody’s.
From this same conference call U.S. Bancorp said about commercial real estate:
Nonperforming assets increased by $489 million or 32.8%… The majority of the increase in the core bank portfolio was related to residential construction, residential mortgages and related industries. However, the economic slow down also had an impact on some of our commercial and retail customers.
I think in 2009 we will have a fairly steady amount of losses in commercial real estate attributed to just more traditional commercial real estate across our national footprint. San Diego real estate agent