Tampa ranks No. 4 in looming commercial loan payments
Tampa Bay Online reports: Florida has the fourth-highest rate of home foreclosures in the nation.
Similar problems in the commercial real estate market would slow a rebound in the economy. The commercial market, valued at about $6.7 trillion nationally, is expected to see half its loans due during the next three years.
Regionally, the south has the largest number of maturing loans, with 60,893 mortgages valued at $96 billion coming due on offices, hotels, apartment buildings, shops and land. The West is second with 20,549 mortgages maturing, with a value of $35 billion.
As these loans get closer to due, landlords worry they will be unable to hang onto their properties.
Credit is tight, property value continues to fall, and lenders may be unwilling to refinance projects. Owners also are dealing with tenants who are having trouble paying rent or are closing their businesses.
A separate report, released Wednesday by Real Capital Analytics, says $2.2 trillion of the nation's office, industrial, apartment and retail properties acquired or refinanced since early 2004 have lost value.
Many of these properties were leveraged 70 to 80 percent. Those owners would have a difficult time refinancing because lenders now typically allow only 50 to 60 percent of the value to be leveraged.
View the full article on Tampa Bay Online: Tampa ranks No. 4 in looming commercial loan payments
Posted by: Nina Turner