RCA in the commercial property press:

Banks Cut Prices to Dump Troubled Commercial Real Estate Assets

Orlando Business Journal reports: According to the Orlando Business Journal, banks are "slashing prices" to exit distressed assets in the beleaguered central Florida market from their balance sheets. This is in contrast to the persistent holding pattern observed over the past two years, when banks were willing to hold onto foreclosed assets until market momentum returned.

Real Capital Analytics, which reports regularly on distressed assets in Orlando and around the US, stated in its July 2010 Troubled Assets Report that the Orlando metro area was home to $2.7 billion of distressed commercial properties. This was down from $3.0-4.0 billion that prevailed one year prior.

With this decline in distress, workouts have been on the rise. This news is encouraging for bullish investors that have been patiently waiting on the sidelines for troubled and foreclosed-upon bargains. With distressed sales taking a larger share of total commercial sales, however, property pricing may remain suppressed for the foreseeable future as banks continue to clear out their foreclosed inventory.

Articles related to this topic:

 Florida Bulk Condo Sales Accelerate
 Facing Widespread Foreclosures, Banks Allowing Some Debtors a Free Pass

Posted by: Nina Turner

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