Reports of commercial real estate lending are coming in, a welcome sign for an industry that has been hit hard by the credit crunch. It looks like there is more money available on the West Coast, but anyone who owns commercial property and is unable to roll over their loans must be thinking there is light at the end of the tunnel now.
The lack of financing has been a chief cause of falling values on office, retail and apartment buildings since 2007, forcing sales at depressed prices. To avoid that, lenders have been busy extending or renegotiating loans, aiming to mitigate investor losses.
Tight credit has exacerbated the effect of the U.S. recession, which has increased vacancies and reduced rents to a point where revenue is falling short of debt payments.
But recent signs of “aggressive” competition to fund office properties, including from insurance companies and foreign banks, mean borrowers could find it tougher to seek breaks on existing loans, the analysts, led by Darrell Wheeler, said in a research note. With more access to funding, they argued, prices would be buoyed, making foreclosures viable alternatives. via Reuters.
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It's good to see any evidence of the commercial market picking up. It worries me that the commercial market feels like the next shoe due to drop and send our economy reeling again.
-Tyler
When will the help come for people who bought apartments with CMBS
(Commercial Mortgage Backed Security)loan and have gone thru the nightmare of not being able to refinance or do loan modification in order to stay in business? When will the govenment wake up and address this huge problem or wait till everybody forecloses?
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