Commercial Real Estate Market Trouble
The commercial and industrial real estate sector is continuing its own struggle this summer. The lack of jobs, and funding for new businesses are expected to contribute to another long, stagnant year for commercial property.
Commercial real estate buyers are looking for leases rather than buying. Plus, a lot of them are just looking and don’t want to do anything for another six months or so.
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Commercial Real Estate … Shopping Center Vacancies Increase
commercial real estate
According to research firm Reis Inc, the vacancy rate in U.S. strip centers during the second quarter rose 0.10 percentage point from the first quarter to 10.9%, slightly below the 11% in 1991 during the prior real estate bust, according to the Reis quarterly report, released last week. Retailers gave up 1.85 million square feet of occupied space in the second quarter at neighborhood shopping centers, while developers opened less than 400,000 square feet of new strip mall space. That compares with an average of about 7 million to 8 million square feet of shopping centers built each year from about 2001, according to Reis. Read more 
Commercial Property Values Head South Again
San Diego commercial real estate
Moody’s Investors Service reported last week that its index for commercial property values fell 2.6 percent in February. It was the first decline recorded by the company in four months.
The drop pushes the Moody’s/REAL Commercial Property Price Indices (CPPI) 42 percent below their October 2007 peak. The ratings agency says commercial real estate values are down 26 percent compared to just a year ago. Read more
Has the Commercial Real Estate Market Bottomed?
CNBC Squawk on the Street – Has the Commercial Real Estate Market Bottomed?
Orange County California real estate lawyer
Commercial Real Estate – Storm Clouds Ahead
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Many insiders believe approximately 55% of the $1.4 trillion commercial mortgages that will mature in the next five years and are now underwater.
About half of all commercial mortgages sit on the balance sheets of smaller regional banks.
This why the FDIC is in the process of setting up a vary large office in the Chicago area, to handle the expected bank failures in the Mid-West.
Commercial Real estate Problems
Goldman Sachs recently raised its estimates for total losses on commercial mortgage loans to $287 billion, of which %180 billion, or 63 percent, will be absorbed by commercial banks.
But vacancies have been rising sharply, especially for apartments, retail and industrial space. Goldman Sachs now predicts that asset prices will fall in the range of 40 percent on average. Rents are dropping at a 9 percent annualized rate, the worst decline on record.
Houston real estate lawyers
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