Trillion Dollars of Commercial Real Estate Loans Coming Due?
From 2010 to 2013 about 1,000,000,000,000 dollars of commercial real estate loans are coming due. For those of you who are numerically challenged, this is 1 trillion dollars. Not a million, not a billion, a trillion dollars. A thousand billion or a hundred thousand million dollars.
Some of this money should roll over, but there is a great deal of securitized commercial loans that will not be renewed. What will these developers do?
That is the question that should keep anyone involved in commercial real estate up at night.
And the most dangerous time for banks will be 2010 to 2013 when $1 trillion in commercial real estate loans will mature and — like homeowners before them — owners of commercial properties will need to refinance.
Blumberg estimates that $236 billion in commercial real estate loans that were turned into securities will need to be refinanced in this period and that $67 billion of that amount “will be lost.”
“We are on the brink of one of the worst commercial real estate financing markets ever,” he said. via New York Post.
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.!!! 
A lot of you really need to go back to kindergarten and learn to spell correctly. If you cannot spell ...
In 2008, there was an extension to push first-time home buyers to purchase their homes quickly since the program did ...
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, ...
Print Ads is the popular way to advertise among seniors in the business industry but today it seems like it ...
Comment by Jeff on 21 May 2009:
Wow… it should be interesting to see how that turns out.
Comment by Alex on 21 May 2009:
It is anticipated that a significant portion of these loans facing major balloon risk will be restructured through bankruptcy. After that, lenders might start easing up on their terms and circumvent the lawyers. Beyond that, many will fail and simply close up shop leaving their creditors high and dry. Opportunity funds may play a big role in recovering from this.
Comment by Robert Unusual Loans on 22 May 2009:
This is good and bad. Good for investors looking for long term investments bad for the overall value of CRE.
Comment by CRE Unusual Loans on 22 May 2009:
I wish I had some serous money to buy up the great deals
Comment by Brandon on 22 May 2009:
Wow. That coul be one heckuva big default!
Comment by Portland Real Estate on 22 May 2009:
It was a terrible system in the first place, it does not surprise me in the slightest that there is going to be some backlash over this.
Pingback by Boston Real Estate Blog : Blog Archive : Commercial Real Estate - Outlook Dim on 23 May 2009:
[...] Source: NY Post via Real Estate Bloggers [...]