Quarter of All Commercial Loans Coming Due in Next 4 Years Underwater
As the residential real estate market is showing signs of stabilizing, the recession is doing some serious damage to the commercial real estate market. Buildings are selling for less than their loan values and vacancies are soaring.
But here is the statistic that blew me away and should have bankers in a panic.
Landlords who are “under water” – and those who lent to them – are facing greater losses. More than a quarter of the $524.5 billion of commercial mortgages on banks’ books that will mature in the next four years are backed by real estate that is now worth less than the mortgage, according to Foresight Analytics, a research firm in Oakland, Calif. That underscores the potential for big losses faced by U.S. banks just as they are still reeling from the home-mortgage meltdown. via WSJ
Think of that, more than 25 percent of all commercial loans coming due in the next 4 years are underwater. And commercial property values are not at a bottom yet.
Although I agree on most points, I would like to point out that most of the banks that are being ...
The question is when are they going to release them on the market. Las Vegas leads the nation in ...
I keep seeing mentions of Florida's market getting better in multiple blogs. I'm increasingly under the assumption that at least ...
I would like to know more about it. I need to know how you file for it. Please let me ...
Great blog, keep the great content coming! 
If you want to succeed, do not say "we can prevent this in the future." Live in reality. ...
The price of the property depends on its quality and the deal between the management. Good and wise choices are ...
I don't have experience at actualy working in tha automotive bussinnes, but have experience working in a warehouse invironment. ...
Pingback by Quarter of All Commercial Loans Coming Due in Next 4 Years … | UNSECUREDLOANSNOW.CO.UK on 4 April 2009:
[...] Read the original post: Quarter of All Commercial Loans Coming Due in Next 4 Years … [...]
Comment by Portland Real Estate on 6 April 2009:
This is terrible. Just when we think that one market is done tanking, the other is headed for the same thing. I really hope that our economy will start picking back up.
Comment by Brendan | San Mateo Real Estate on 9 April 2009:
Those numbers sound scary but how many businesses own their land/buildings out right/without a loan? Numbers can be deceiving. Many businesses don’t even operate out of buildings nor need land to function. Just sounds like another thing to scare people and further mess up the real estate market.