Commercial Real Estate’s Status: $10MM is the New $100M, Part 1
Like most other industries it is clear that Commercial Real Estate is in the midst of an economic downturn the likes of which we have never seen before.
Like most other industries it is clear that Commercial Real Estate is in the midst of an economic downturn the likes of which we have never seen before. There was a recent Net Lease Conference held by Real Share which focused on analyzing where the market is, how it came to this point, and what path recovery might look like.
In the opening segment, panelists touched on a few key statistics and events. First and foremost was General Growth Properties recent Chapter 11 bankruptcy filing. This came about because of their large debt load created by acquisitions such the purchase of Rouse Company for $12.6B in 2004 combined with the recessionary issues of lower consumer spending and ailing retail tenants.
Shorter term debt matured at the same time as the retraction in the global financial markets. It was then mentioned that $594 Billion of additional commercial mortgages will mature between 2009 and 2011 and no financing vehicle is currently available to fill the void, leaving the industry with a major liquidity problem.
First, Understanding the Economic Downturn
Second, Other Key Points
The next segment of this article will cover Institutional Investors, Private Martkets, and the New Realities of Debt Financing including realistic financial institution lending criteria for today and the near future.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR WEB SITE? You can, as long as you include this complete statement with it: ‘“The Investment Property Insider” is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://investmentpropertyinsider.com/, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: “The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them.” ’