Distressed Commercial Real Estate Report

Nationally, the total value of distressed commercial real estate in August 2009 is $114.2 billion, including properties in distress, foreclosure, and lender REO, according to data from Real Capital Analytics. This is an increase of 17%, or $16.8 billion, since our June report. This rate of growth has slowed from earlier in the year – in the first half of 2009 the total value was doubling every three months. It is our experience from working with clients that this reflects the temper of many lenders to work with borrowers in extending debt obligations, with or without credit enhancement. Retail properties continue to represent the largest segment, at $32.7 billion in August compared to $29.7 billion in June.

Delta Associates, an East-Coast provider of research and valuation services, has been publishing a report on distressed commercial real estate, and they recently published their third report last month. We’re inundated these days with news about distress and trouble, but the report is a pretty quick way of getting a quantified snapshot of whats going on. It seems most of the research is based on data from RealPoint.

I’ve embedded the report below. You can also download it here.




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