A Drop in CRE Distress
Globe St. reports: Delta Associates will be releasing figures this week that show the current total value of distressed commercial real estate nationwide at $166.8 billion. This number, compiled with data from global commercial real estate research firm Real Capital Analytics--which includes properties in distress, foreclosure and lender REO--represents an 11% decrease from the last report in March. At that time, the total value of distressed commercial real estate was $187.4 billion--an increase of 10% or $17.3 billion--since the January report and 33%, or $46.9 billion, from the November 2009 report.
The report also illustrated the changing fortunes of some markets as the industry downturn continues. The Manhattan market continues to have the highest distressed real estate volume, followed by Los Angeles/Orange County. South Florida, with $1,191 in distressed property per capita, has the highest ratio per capita besides Manhattan. And perhaps most surprisingly, the Washington, DC-area market has the next highest at $813 per capita--a trend that began in January.
These trends may solidify or shift again as refinancing continues to be difficult for borrowers and banks continue to fail. The report says that "the real test of velocity of distress" will be this year and next with some $600 billion in loans coming due and up to 350 banks expected to fail.
View the full article on Globe St.: A Drop in CRE Distress
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Posted by: Nina Turner