Roubini’s RGE Monitor on Real Estate

RGE Monitor has an article out on the State of Real Estate Around the World. It’s a bit of a long read, but highlights are below on the commercial side of things in the USA:

Commercial vacancy rates are on the rise in almost all major centers in Europe and North America and net effective rates have declined by 25-30% in major cities in Asia, suggesting that new investment is unlikely as these cities try to absorb overcapacity in retail and hotel trade.

…

On May 19, the Federal Reserve announced that “starting July, certain high-quality commercial mortgage-backed securities issued before January 1, 2009 (legacy CMBS) will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF).” Moreover, the maturity of TALF loans backed by legacy CMBS was extended to 5 years. While TALF is a non-recourse lending facility originally created to reignite the consumer and small business loan securitization market, the effective drying up of the CMBS re-financing market puts $160 billion of CMBS maturing this year out of the $700 billion at risk in 2009 alone.

For a full read, the article can be viewed here.

Similar Posts:

• Government Expands Financial Stability Act to Include CMBS
• TALF Extended Into 2010
• Commercial Real Estate Lending Remains Tight
• Prudential CRE US Quarterly Update
• Commercial Maturities Update from First American CoreLogic

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