Mosler: Industry Better Off Than Nine Months Ago
Globe St. reports: Cushman & Wakefield CEO Bruce Mosler told a packed room of Young Men and Women of Real Estate Association members Tuesday that the real estate industry is in a better place than it was nine months ago. On today’s real estate business climate, Mosler advised perspective, reminding the mostly younger group that just a few months ago, "there was extraordinary uncertainty" as to whether the banking system would survive or be nationalized.
Today, amid TALF, TARP and other government bailouts commonly known by their initials, Mosler said, "Banks are lending," but added after a slight pause, "at least to each other." He said liquidity is "still the greatest challenge," pointing out that an emerging question among lenders appears to be "who goes first?"
Despite what he called government’s attempts at restoring liquidity, Mosler said the real estate industry has yet to see it. Speaking to current and future uncertainty, Mosler noted the $400 billion in commercial real estate mortgages set to mature over the next three years, and said there’s really no telling how much distressed property will come onto the market.
As of June 4, Manhattan was home to 74 assets considered to be troubled assets according to Real Capital Analytics. The value of those properties was listed at $7.5 billion. The outer boroughs contained slightly more than $1 billion in distressed property; Long Island, $595 million; and Westchester, $172 million.
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Posted by: Mark Alferman