RCA in the commercial property press:

Austin Office Market Shares National Distress

The Austin American-Statesman reports: Real Capital Analytics ranks Austin 22nd out of 59 U.S. metro markets in terms of distressed office and 32nd when that value is scaled to the size of its market over the past several years.

For example, Pittsburgh has $134 million worth of office property in trouble — less than Austin — but is a smaller office market. So Pittsburgh's total represents 12 percent of its market, while Austin's accounts for only 3 percent of its market, said Ben Thypin, a market analyst with Real Capital Analytics.

Thypin said that nationwide, there aren't as many foreclosures as might be expected. Credit has become a little more available, so some borrowers have been able to refinance. Also, with prices coming down, there are some buyers in the market, he said.

Also, banks in general are hesitant to take properties back and are inclined to modify or extend a troubled loan rather than have to mark down the value on their books, meaning they could run afoul of federal requirements for capital ratios.

Articles related to this topic:

 Seattle Area Tops U.S. In Share Of Troubled Real Estate Loans

Posted by: Mark Alferman

<< Prev

Next >>