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Posts tagged ‘Commercial Real Estate’

8
Jan

Commercial Real Estate the Next Bailout?

 

commercial real estateWith all the focus on residential real estate, very little attention is being paid to the commercial real estate market.

In a report by the National Association of Realtors, it said in part:

The fundamentalists in commercial real estate are feeling the stress of a slowing economy and troubled credit markets. Job growth, particularly in office-using industries, has been declining. Vacancy rates are expected to rise in all sectors due to decreased demand. The financial decline is squeezing credit availability for commercial projects. As a result, transaction activity is down over 50 percent compared with last year.

With the economy in a trail-spin, it seems that almost daily we hear about major retail stores going out of business or closing many stores. This is the major problem for commercial real estate. If 'anchor' stores in shopping centers close, the 'traffic' to an individual center is drastically impacted. Therefor, the impacted centers' smaller, remaining tenants, could see their sales drastically decline.  Thus, not only the value for an entire shopping complex can be affected, but it's very existence could be at stake.   San Diego income property

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24
Oct

Commercial Real Estate Slump Possible in 2009

Commercial Real EstateOne of the nation’s leading investment fund managers, Blumberg Capital Partners, said research by their commercial real estate staff suggests significant price erosion of as much as 15% this year, across many markets and 20% in 2009.

Philip Blumberg, Chairman and CEO of Blumberg Capital Partners said: “A number of commercial property investors who bought since 2005 are now finding that they overpaid and are overleveraged, with few avenues to refinance. Unfortunately, too many of those buyers had unrealistic expectations: the economy would continue growing unabated, capital flows would remain at unrealistic levels, pricing of commercial office buildings would continue growing, new buyers would continue emerging and credit would always be plentiful.”                               san diego commercial real estate

 

8
Sep

Home Mortgage Real Estate Delinquencies Rising Across the Board

 The chart below shows continued rising delinquencies across the board in Residential Real Estate, Commercial Real Estate, and Consumer Credit cards. housing delinquency rates

Nearly five in ten Americans (48%) are uncomfortable with the total amount of household debt they have according to a nationwide survey by LendingTree. Furthermore, the survey discovered that 54% do not have a financial plan, proving the majority of Americans have no intention or definitive strategy to manage the amount of debt they have accumulated.      San Diego home sales

 

 

 

25
Aug

Commercial Real Estate Prices Fall 11.8% from Peak

commercial real estateMoody’s Investor Services released a report showing that their Property Price Indices (CPPI) fell for the fourth straight month in June.The CPPI is down 3.3% from May, 9.6% below June 2007 and 1.8% below its peak in October 2007. Plus, the volume of transactions dropped significantly throughout the first half of 2008, declining more than 25% over the first half of 2007.   San Diego county real estate agents

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