$46B in CMBS Balances Now Delinquent

RealPoint’s February report is out and things continue to get worse on the CMBS front. Not only is the oustanding CMBS loan amount huge, but the rate of growth is staggering. The amount of distressed 90+ day loans rose 28% in one month.
In January 2010, the delinquent unpaid balance for CMBS increased by another $4.3 [...]

LeFrak and Flexner on CNBC

Tom Flexner, head at Citi Global Property and LeFrak of the LeFrak Organization on CNBC. Lots of capital sitting on the sidelines, and LeFrak is trying to figure out how to deploy it. Flexner’s answer: reduce your return requirements.

Premier Retail Location in Default

Remember the Premier Retail Location by Santana Row we blogged about back in October? Well not surprisingly, the asset is now in default. On the one hand, only big rents can save this thing, but on the other what is the point of marketing it at a ridiculous rent and simply spinning your wheels?
Looking from the [...]

Congressional Oversight Panel Issues Report on CRE

The Congressional Oversight Panel, chaired by Elizabeth Warren has issued its February report, and it’s focus is on “Commercial Real Estate Losses and the Risk to Financial Stability”.
It’s a long read (189 pages), but from the executive summary here are some key points:
Between 2010 and 2014, about $1.4 trillion in commercial real estate loans will [...]

Banks Increasing CRE Lending; Bond Spreads To Widen

Sentiment at the Mortgage Bankers Association meeting last week in Vegas showed improvement. More banks are not only willing to lend, but their threshold for risk and size is also increasing.
That readiness to restart was reflected in a separate survey of 60 banks and other lenders at the Mortgage Bankers Association’s annual conference in Las [...]

S&P: Worst Yet To Come For Commercial Real Estate Loans

Despite all the good news that you’ve been hearing about commercial real estate, we haven’t been entirely convinced. We’ve indicated that uncertainty and continued weakness in rents and occupancy are powerful enough forces to keep the commercial real estate sector in check for some time. Now S&P is out with a research paper entitled, “Industry Outlook: [...]

CRE Videos … Sternlicht and More

More videos…
First up, Barry Sternlicht on Bloomberg from Davos. Not much new except that they’re hot on residential land. This is understandable as housing stabilizes in a market that has seen little new development.

Second up is Greg Genovese, of Thompson National Properties, and Jordan Sadler, of Keybanc Capital Markets discussing FED impact on the commercial [...]

Prudential U.S. Quarterly Report

rudential has put out it’s latest report outlining it’s take on the commercial real estate market. Some bullet points from the report:
The recent appearance of positive indicators – economic and otherwise – has turned market sentiment in the commercial real estate sector decidedly more favorable.
Widespread distress has yet to materialize, although it should be [...]

Bruce Mosler of C&W Optimistic

Bruce Mosler, co-chairman of Cushman & Wakefield believes that the activity at the end of 2009 will continue. There is no doubt about that; companies as we type are negotiating large deals (there are numerous 200K+ SF deals in the works) in the valley. The question is not absorption so much as it should be [...]

Moody’s: CRE Prices Will Continue To Fall

Despite seeing a 1% uptick in November prices, Moody’s is indicating that it is very likely that commercial real estate prices will continue to fall.
“We anticipate further deterioration in property fundamentals and increases in cap rates,” he suggested, acknowledging that “the worst of the value declines is likely over.”
This goes to the heart of what [...]