Estimated $800 Billion To $1 Trillion Loss In Commercial Real Estate

March 2, 2010
1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading ... Loading ...

According to the Fisher Center For Real Estate and Urban Economics, an estimated $800 billion and $1 trillion losses to commercial real estate equity and debt will be realized over the next few years.

The annual volume of commercial mortgage maturities increases each year that definitely means a great loss for banks, life insurance companies, commercial mortgage backed securities (CMBS) holders and other investors.  These real estate losses will pile up unless borrowers are able to find alternative funding sources.

The surge in investment volume in commercial real estate properties came from a flood of liquidity.  The peak in domestic CMBS issuance…

Commercial Real Estate Will Continue to Weigh Down This Year

January 12, 2010
1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading ... Loading ...

Grubb and Ellis Co., is predicting that the demand for commercial space will be flat in 2010. The company which offers leasing and investment services for commercial tenants and builders in Riverside and San Bernardino counties forecast suggests more declines this year.

During November and December, the Inland economy showed signs of stability. Few are optimistic about employers in the region which gave significant numbers of new jobs in 2010. The consensus suggests that there will be job growth.

That was among several indicators that signaled the recession ended in the second half of 2009. Grubb & Ellis’ forecasters say that this…

General Electric Co. - Expects a $7-Billion Loss in Commercial Real Estate

December 10, 2009
1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading ... Loading ...

New York – GE Capital Executives said on Tuesday that General Electric Company expects to lose $ 7 billion from the battered commercial real estate sector.

During the annual investor day, executives said that the decline in values has also driven down the value of its collateral for commercial real estate loans. The company said it expects continued trouble in the sector in 2010, and expects commercial real estate values to fall 13% next year.

Vast holdings of GE are well diversified especially for the commercial real estate market. Unfortunately, it seems that everything is getting dim for the company this time.

So…

Limitations in Commercial and Residential Leases

October 18, 2009
1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading ... Loading ...

It doesn’t take much to turn an ordinary homeowner into a landlord. While many people would love to have an extra house to worry about, owning even one rental property can be a headache.

While residential use limitations do not need to be as detailed as those applicable to commercial leases, there are still significant considerations that must be made.

While the intended use of the property has undoubtedly been considered in advance of the signing of the lease agreement, it is necessary that an owner include limitations on the tenant’s rights to use the premises. Due to assumptions, prior informal conversations…

A Fat $2.7M for NYC’s Skinniest House

September 5, 2009
1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading ... Loading ...

Want a piece of New York City history? Well, you better have a pile of cash and a whole lot of savings to treat yourself with this tiny yet pricey home.

This 9.5 feet wide and 42 feet long narrow red-brick townhouse, located at 75 1/2 Bedford Street in Greenwich Village, was built in 1873. It is squeezed between 75 and 77 Bedford St. and with this size; it is billed as the narrowest house in New York City with an asking price of $2.7 million. The current owner bought it in 2000 for $1.6 million.

The three-story structure boasts plenty of…

More Hotel Properties on Default Amidst a Tough Commercial Market

August 13, 2009
1 Star2 Stars3 Stars4 Stars5 Stars
(1 votes, average: 4.00 out of 5)
Loading ... Loading ...

Lenders are in a more uncomfortable position these days as there is a significant downturn in commercial property values.  Due to such slump, lenders are on the hook more and more for some very large loans to hotel and retail companies.  64 properties with loans over $100 million are late and in trouble, said a report released by Fitch Ratings.

The hotel sector is not only a weak spot in the commercial market, but even a sore one.  This is really bad news, considering that the sector was just recently overbuilt.  Both Red Roof Inn and Extended Stay properties are entering…