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Commercial real estate: How deep is the rabbit-hole?

Posted By Prieur du Plessis On November 23, 2009 @ 10:36 am In Investment,Real Estate | No Comments


D.C.-area developer Jeff Neal gives the Huffington Post Investigative Fund a tour of empty commercial properties just blocks from the Capitol. Hundreds of small and medium-sized banks are facing huge numbers of possible defaults by builders who erected thousands of office towers, condominiums and shopping centers with the easy credit available five years ago.

“Commercial real estate loans generally have terms of five to seven years. Many of the loans issued at the height of the credit bubble are coming due. By mid-November, $150 billion worth of commercial properties, about 7,500 in total, were in distress, according to Real Capital Analytics Research,” reported The Huffington Post [1]. More than 400 banks are on a problem list maintained by the Federal Deposit Insurance Corp, largely as a result of commercial debt.

Referring to the malaise of commercial real estate, Michael Stevens, senior vice president for regulatory policy at the Conference of State Bank Supervisors, said: “It’s not the next big thing. It is the big thing. We’re dealing with it right now. We wouldn’t be at 120 bank failures if we weren’t seeing it now.”

Click here [1] for the full article.

Source: YouTube [2] and The Huffington Post [1], November 20, 2009.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail. [3]

More on this topic (What's this?) [4]
Billions, Literally, Chasing Distressed Commercial Real Estate [5] (REIT Wrecks, 7/15/09)
Wilbur Ross: 500 More Banks to Fail [6] (Wealth Daily, 9/3/09)
The Commercial Real Estate Forecast [7] (Wealth Daily, 8/6/09)
Read more on Commercial Real Estate [8] at Wikinvest [9]

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URL to article: http://www.investmentpostcards.com/2009/11/23/commercial-real-estate-how-deep-is-the-rabbit-hole/

URLs in this post:

[1] The Huffington Post: http://huffpostfund.org/stories/2009/11/video-are-zombie-buildings-next-economic-calamity

[2] YouTube: http://www.youtube.com/watch?v=Q4TqcnID77c

[3] Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.: http://www.feedburner.com/fb/a/emailverifySubmit?feedId=921608&loc=en_US

[4] (What's this?): http://www.wikinvest.com/blogger/wikinvest_wire

[5] Billions, Literally, Chasing Distressed Commercial Real Estate: http://www.reitwrecks.com/2009/07/distressed-commercial-real-estate.html

[6] Wilbur Ross: 500 More Banks to Fail: http://www.wealthdaily.com/articles/wilbur-ross-500-more-banks-to-fail/1971

[7] The Commercial Real Estate Forecast: http://www.wealthdaily.com/articles/the-commercial-real-estate-forecast/1932

[8] Commercial Real Estate: http://www.wikinvest.com/industry/Commercial_Real_Estate

[9] Wikinvest: http://www.wikinvest.com

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