High Level of Distress Forces Some Real Estate Firms to Throw Lifelines
Roanoke Times reports: Banks are not in the property management business, but waves of foreclosures increasingly are forcing them to become landlords. Some Roanoke commercial real estate companies say they are coming to the rescue.
In the midst of a tough economic environment, some companies are throwing a lifeline to a rising segment of their business and one that they expect will escalate through next year -- properties in financial trouble.
The number of troubled commercial assets in the United States has jumped 145 percent this month, from the same time last April, according to Real Capital Analytics, a global research and consulting firm. That is 9,659 troubled properties, compared with 3,929 in 2009. The total volume is $200 billion, from $72.8 billion last year, the firm reported. Comparatively, there were only 158 troubled commercial properties in Virginia, with a total volume of $3.2 billion in April.
In the Roanoke Valley, retail and industrial businesses have been dealt the hardest financial blows, putting their properties at higher risk for default, real estate agents said. This is a domino effect sparked by economic pressures, bankruptcies and empty storefronts and buildings.
Still, compared with larger cities, the Roanoke Valley's commercial market is not in as dire shape. Office spaces largely are filled and occupancy remains stable.
View the full article on Roanoke Times: High Level of Distress Forces Some Real Estate Firms to Throw Lifelines
Articles related to this topic:
Over $187 billion in Distressed Property Nationally
Health Care Reform May Help Distressed Commercial Real Estate
Economic 'Fogginess' Explored and 2010 Predictions Offered
Community Banks See Opportunity Amid Slide
Distress Remains High in the Southwest
Distress Trouble Continues As Large Office Landlord Seeks Loan Modification
Apartments in Decay and Distress - Where's the Fix?
Lenders Slow to Analyze Distressed CRE Loans
Posted by: Nina Turner