Is the worst over for commercial real estate?
That depends upon what you read, see on TV and hear on the radio. And sadly we have a great deal of "industry driven" mis information.
Brokers and agents everywhere want a health to "boom-time" market regardless of the facts. However we a far from either.
According to the publication, "Real Estate Forum" April 2010,
# 1. " ...commercial property sales in 4 major sectors, office, industrial, retail and apartments, totaled some $44 billion in 2009, down 90% from its peak in 2007 according to Real Estate Analytics. Since then real estate values have dropped 40%
#2."Clouds Hover Over Sunshine State; "Some say Florida's real estate market may not fully recover until the 2030s."
#3. By the end of 2012 $153 billion in commercial loans are coming due and according to Deutche Bank some $ 100 billion will have difficulty getting refinanced.
#4. According to FDIC by the end of 2009, the number of problem financial institutions on its "problem list" rose to 702 with 130 banks failing in 2009. By March 2010 26 banks have failed.
# 5. Retailers are seeing better slightly days but a still-slow economy, lack of jobs and low consumer confidence have both tenants and developers treading cautiously."
Bill McInerney
617-816 3033
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