Nov 19 2009

Commercial Real Estate Reality Check: 2007 Commercial Real Estate Valued at $6.5 Trillion with $3.5 trillion loans. Today, Commercial Real Estate Valued at $3.5 Trillion with $3.5 Trillion in Loans. Can you spot the Problem?

Commercial real estate is dealing with the neutron bomb effect.  The buildings still stand but the inside is gutted as if vultures had devoured a carcass.  What we are seeing, like in many other sectors of our economy, is a distinction between reality based economics and the inflated prices of Wall Street.  If we look [...]

Nov 1 2009

Plan C as in Commercial Real Estate - FDIC: 115 Bank Failures in 2009. Total Assets of FDIC Insured Banks $13.3 Trillion. $3 Trillion Backed by Shaky Commercial Real Estate.

It is one thing when a few analysts say that commercial real estate, that $3 trillion elephant in the room, is going to experience trouble starting next year.  It is another thing when billionaire investor Wilbur Ross comes out and states that commercial real estate is going to crash and burn.  We’ve been looking at [...]

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