Foreclosure Nation

Introduction We all know all too well that there are troubles in housing. Folks cant afford to pay their mortgages and homes are going into foreclosure. But what about commercial real estate, the shopping centers, office buildings and warehouses local industry and the economy rely on? You see ...

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The research firm Delta Associates says distress in the commercial sector is maintaining its plateau. The company’s analysts report that despite a $5 billion increase in the volume of commercial properties in foreclosure and lender REO over the last two months, the level of distress has remained i...

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Although commercial real estate prices dipped in December and January after three straight months of gains, they are up 4.2 percent from an eight-year low in August, and the overall trajectory for a commercial real estate recovery remains positive, according to reports this week in Commercial Real E...

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A swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They can also be used by speculators to replicate unfunded bond exposur...

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Commercial property took less of a drubbing than residential real estate in the recession but still faces a long and painful recovery. Banks have already taken $80 billion in commercial real-estate losses—about half of what they are expected to take as a result of the recession, according to the Fe...

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The increase in hotel transactions and low cost of debt and equity have driven down rates of return to pre-recession levels. This article sets forth an overview of recent hotel cap and discount rate trends and provides an outlook for 2011. The hotel investment market has taken a 180 degree turn ove...

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The U.S. commercial real estate market is ranked the No. 1 choice for investment this year and viewed as the best opportunity for price appreciation, according to a survey of foreign investors by the Association of Foreign Investors in Real Estate (AFIRE). More than 60% of respondents indicated t...

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Fed’s Beige Book: Continued Pockets of Economic Distress, but Definite Signs of Recovery; Commercial Real Estate on the Mend, But Not Out of Danger Yet The Federal Reserve’s Jan. 12 “Beige Book” — intended to help guide the Federal Open Market Committee (FOMC) when it next discusses monetary polic...

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The commercial property market is an interesting economic indicator, shedding light on the overall strength of a metro economy — which segments are doing the best, and what is valued the most by job-creating businesses. The signals are mixed in the Bay Area, but they do suggest that a rebound is und...

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There are two major, recognized price indices for commercial property. The Moodys/REAL Commercial Property Price Index (CPPI) tracks price changes for commercial real estate properties1. The index methodology is based on the analysis of completed sales transactions through repeat-sales regression an...

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Many a pundit has argued that the key to economic recovery can be found in small businesses. Distressed conditions in the commercial real estate market combined with historically low interest rates present an opportunity for small business owners looking to grow their businesses, but many are findin...

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BY: CARRIE BAY Hearing declarations that recovery has taken hold in the commercial real estate sector, with property values and fundamentals on the upswing? Hold up – not just yet. Commercial real estate prices have slipped again and are now the lowest they’ve been since the beginning of...

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Stabilizing operating conditions, firming values and strengthening recovery rates will inspire lenders to increase their disposition of distressed properties, though a flood of liquidations will not occur. Many lenders extended loans or warehoused reclaimed assets through the downturn, waiting for v...

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Investor Appetite Strengthens for Core Assets, According to PricewaterhouseCoopers' Korpacz Real Estate Investor Survey® Market Uncertainty and Minimal Leasing Velocity Drive Flight to Quality For Commercial Real Estate Investors Average Overall Cap Rates Decrease in 26 of the Survey's 31 ...

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Commercial prices were down 5% in March, Almost 30% from March of 2009. And almost 50% from the peak....

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Either way nows a great time. There's plenty of selection and the price is right. Lenders are also tripping over themselves to find deals that can get approved by their underwriters and owner-occupied CRE is at the top of the list. If you own your own business and want to buy an owner - occupied pr...

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Even Elizabeth Warren, head of the Congressional Oversight Panel overseeing TARP, is worried that about half of all commercial real estate mortgages will be underwater, and most are concentrated in regional banks. 2,988 banks are at risk over the next three years. Comptroller of the Currency ...

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Private equity investors at the moment seem to be looking for deals with a 1 year to 18 month hold period and 25% IRR. Banks on the other hand are looking for investor slooking for deals with a 5 year hold period and 15% IRR. Hence there are not to many deals getting done...

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Funny how you can pick up any paper today and read two or more articles related to the many indicators we rely on and predicting vastly different recovery time lines, patterns and outcomes. For example, on the one hand, CRE transactions were looking good in December, leading some to at least hin...

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The February 10, 2010 Congressional Oversight Panel report on Commercial Real Estate Losses and Risk to Financial Stability includes some noteworthy updates and new information and brings to mind some other factors that should be kept in mind but may not be obvious when considering the state of th...

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After 13 months of consecutive declines, overall commercial property values climbed 1%, according to the most recent monthly reading by Moody's/REAL Commercial Property Price Index. Estimates published last November by the Urban Land Institute and PricewaterhouseCoopers suggest that commercial real...

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Its seems commercial prices increased 4.1 % in December. This is a big increase relative to the past 10 years or so and is the second increase in a row. The number of deals also rose…over 75%. And the dollar value of the total deals was also up…a lot. But my personal feeling, and this is base...

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A New Decade, a New Opportunity; Florida's New Frontier for Commercial Real Estate in 2010. It’s no secret that Florida is one of four states that has borne the brunt of the residential real estate bust. As we now move forward into a new decade, a once-in-a-lifetime opportun...

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For anyone who questions whether or not there is a looming commercail real estate crisis... Just under $400 billion in CRE matured this year and we are already seeing issues...many are only in the beginning stages of the default and forelcosure process now. Many presumed workouts will fail. A...

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If progress can be measured by folks wanting to participate in yet another bailout initiative then progress seems clear for the TALK program. Investors asked the Feds for $2.3 billion to be collateralized by those all too hard to sell/until Uncle Sam’s paying no one wants to buy CMBS created before...

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In the world of commercial real estate, it’s starting to rain cats and dogs. Winds are stirring from three inter-related directions; First, tenant stability, income and occupancy levels; Second, pressure from lenders; and, Third, preservation of asset valuation. But there are steps some prope...

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Here's a quick recap of some of the ruors floating around out there about the extent to which lenders are discounting prices on the sale of commerciall REOs.... Miami-Dade County: Aventura: Bank-owned condo reduced by 52 percent. Bal Harbour: Bank-owned, oceanfront condo reduced by 33 percent....

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I just read a prediction today that the commercial real estate market will worsen over the next two plus years. That I can see since that market's been lagging a few years behing residentil all along. But also predicted was that residential real estate prices two years from now will be less than the...

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