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.
Well Tom, once again you have said it much better than I could have. Unfortunately the folks at Move, ...
It certainly does not bode well for a fast recovery in the economic climate. This will affect all real estate ...
I HAVE 25 YEARS EXPERIENCE IN TELECOMMUNICATIONS..HOW DO I APPLY AT KAI. 
Definitely not a fan of Move Inc.!!! 
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I also need HELP and don't know what to do about my problem. I have a garden apartment off ...
I have the same situation. I sold my home in July and am scheduled to to close in a few ...
My cousin in Maryland going thru same thing as Jack Thomas. Have loan Mod Agreement from Countywide dated April 2009, ...
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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.