Grim reality grips U.S. commercial real estate!
NEW YORK - November 3, 2009 - Executives do not expect the U.S. commercial real estate market to emerge from critical condition any time soon, according to a survey by The Real Estate Roundtable.
Although the three indexes tracked by the "Sentiment Survey" have risen dramatically since the near-collapse of financial markets last year, they reflect the respondents' collective sense of relief at having survived the worst of the turmoil, according to The Real Estate Roundtable.
The U.S. commercial real estate market has been in a downward spiral for more than two years. On the whole, U.S. commercial real estate values have fallen about 40% from their peaks in 2007. Some borrowers face shortfalls in financing when loans come due, while others are struggling just to meet monthly payments.
The delinquency rate of U.S. commercial real estate loans that had been securitized into Commercial Mortgage-Backed Securities (CMBS) hit 4.8% in October, up from 4.36% the prior month and dwarfing the 0.77% rate a year earlier, according to Trepp, which tracks CMBS loans.
Although the three indexes tracked by the "Sentiment Survey" have risen dramatically since the near-collapse of financial markets last year, they reflect the respondents' collective sense of relief at having survived the worst of the turmoil, according to The Real Estate Roundtable.
The U.S. commercial real estate market has been in a downward spiral for more than two years. On the whole, U.S. commercial real estate values have fallen about 40% from their peaks in 2007. Some borrowers face shortfalls in financing when loans come due, while others are struggling just to meet monthly payments.
The delinquency rate of U.S. commercial real estate loans that had been securitized into Commercial Mortgage-Backed Securities (CMBS) hit 4.8% in October, up from 4.36% the prior month and dwarfing the 0.77% rate a year earlier, according to Trepp, which tracks CMBS loans.
