UK emerging as best bet for commercial property recovery while US remains troubled
Property Wire reports: The UK commercial property market is in the best position to recover compared with other key European sectors but the US is still on a downward spiral, according to reports from analysts.
But it is a different story across the Atlantic. In the US the number of commercial properties in default, foreclosure or bankruptcy are now valued at more than $108 billion, an amount that has almost doubled since the beginning of the year.
Research from Real Capital Analytics, shows that a scarcity of credit is causing property defaults in all regions and among every investor type. Hotels and retail properties are among the most problematic assets, it said in a report.
'Perhaps more alarming than the rapid growth in the distress totals is the very modest rate at which troubled situations are being resolved,' the report added.
Even although about $4.1 billion of commercial properties have emerged from distress, the future is still gloomy. 'In far more situations, modifications and short-term extensions are being granted, but these can hardly be considered resolved, only delayed,' the report concluded.
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Posted by: Nina Turner