RCA in the commercial property press:

Making the Case for a Commercial Real Estate Crisis

The Commercial Observer reports: The Congressional Oversight Panel that monitors government spending under the Emergency Economic Stabilization Act has released a new report on conditions in commercial real estate markets. Titled "Commercial Real Estate Losses and the Risk to Financial Stability," the report addresses the potential for further deterioration in commercial mortgage performance to spill over into the broader economy, thereby curtailing growth. The Oversight Panel concludes that "a significant wave of commercial mortgage defaults would trigger economic damage that could touch the lives of nearly every American." As defaults and bank losses rise, the likelihood of a large number of bank failures increases.

Dr. Sam Chandan, RCA's Global Chief Economist, explains that acquisition, development, and construction (ADC) loans and permanent commercial mortgage financing are concentrated on the balance sheets of smaller lenders, placing these sources of credit at greater risk.

Articles related to this topic:

 ‘Tranche Warfare’ Erupts as Property Owners Slide Into Default
 Real Capital Analytics Acquires Real Estate Econometrics
 Jobless Rate Drops; Losses Still Hurt Commercial Real Estate
 Oversight Panel Report Forecasts More Commercial Distress
 Tight Credit Conditions Persist As Commercial Mortgage Defaults Rise
 D.C. Provides More Evidence That Commercial Real Estate Headed for Foreclosure Crisis
 Decaying Apartments Symptom of Housing Crisis
 Pricing, Credit Woes Plagued 2009 Sales
 Commercial Real Estate Getting Better and Worse
 No Clarity on Fannie Mae and Freddie Mac's Future

Posted by: Matthew Stone

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