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Real estate news this week was mostly about the difficulty in the commercial markets. It seems that the losses are coming fast and furious as investors and owners are writing down assets rapidly.

JPMorgan Chase & Co. Chairman and Chief Executive Jamie Dimon was less than optimistic:

During a conference call with investors following the bank’s first-quarter earnings report, he said: “In general, the losses [in commercial real estate] are going up and I think if you talk about the whole system…you are going to see rapidly rising charge-offs in real estate loans.” via WSJ

General Growth, the owner of 200 malls across the country filed for bankruptcy:

The company received approval on Thursday from federal bankruptcy Judge Allan Gropper to use its cash collateral to operate its businesses during bankruptcy.

Chicago-based General Growth, which owns such valuable properties as South Street Seaport in New York, Fashion Show in Las Vegas and Faneuil Hall Marketplace in Boston, listed total assets of $29.56 billion and total debts of $27.29 billion.

The collapse marks a sad chapter for a company that has been growing since 1954, when brothers Martin and Matthew Bucksbaum decided to expand their family’s grocery business and build a shopping center in Cedar Rapids, Iowa. via Reuters

And the velocity of commercial transactions has slowed tremendously, down 70 percent for 2008 and 82% over two years ago. And the residential guys think they have it rough…

The New York-based firm said sales in the first three months of 2009 were just one-sixth of the number of buildings that traded two years ago. All told just over 1,000 buildings valued at $47 billion were sold in the first quarter of 2009.

Another worrisome sign is the rise in the number of distressed properties. Real Capital reported that another $55 billion worth of assets fell into default on their mortgages during the first quarter, bringing the total value of assets known to be in distress to “a stunning $153 billion,” an jump of 56 percent over the fourth quarter of 2008.

Of the properties across the globe that are in trouble, 85 percent are located in the United States, Japan, Spain, the United Kingdom and Australia. Real Capital noted a trend emerging in which lenders are extending the loans rather than forcing payment, calling it “kicking the can down the street.” via Bizjournal

Related posts:

1. Alert The Media – Banks Are Making Commercial Real Estate Loans
2. 90 Billion In Commercial Foreclosures – REITS and Vultures Racing In
3. Trillion Dollars of Commercial Real Estate Loans Coming Due?
4. Capmark, Formerly GMAC Commercial, Files For Bankruptcy
5. Vornado Building $1 Billion Dollar Vulture Fund For Commercial Real Estate