Dec 17 2009

The Commercial Real Estate Default Wave is Here: Commercial Mortgage Defaults Now at 16 Year High. 3.4 Percent of all Commercial Real Estate Loans in Default.

What has been lost in the housing talk recovery is the grim statistics that commercial real estate has fallen 37 percent in value in the last year.  This wouldn’t be such a big problem aside from the tiny detail that some $3 trillion in commercial real estate loans are still outstanding.  The commercial real estate [...]

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 [...]

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