The latest release of the Moody’s/REAL Commercial Property Index showed a notable decline of 2.6% since January, breaking a three month streak of rising prices and continuing to suggest that the nation’s commercial property markets are experiencing a tremendous downturn with prices down some 25.81% on a year-over-year basis and a stunning 41.66% since the peak set in October 2007.
via - Seeking Alpha.
Now the company is notable more for its growing roster of lawsuits, some by lenders and others by subcontractors, all while it files lawsuits of its own against shopping center tenants that allegedly arent paying rent.Economists have warned that the commercial real estate market is the next crisis
via MiamiHerald.com.
[This is a situation many commercial property owners are facing as other businesses struggle to survive -- Tim]
Most businesses lease, putting them at risk of eviction if their landlord defaults. But as Todd and Myrna Dow, of Sisters, learned the hard way, a legal document — called a subordination, non-disturbance and attornment agreement — exists to protect against that very scenario, which has become more common with the down economy.
via The Bulletin.
In January 2010, the delinquent unpaid balance for CMBS increased by another $4.3 billion, up to $45.94 billion from $41.64 billion a month prior.
“There's been an enormous bubble in commercial real estate, and it has to come down,” said Elizabeth Warren, chairman of the Congressional Oversight Panel, the watchdog created by Congress to monitor the financial bailout. “There will be significant bankruptcies among developers and significant failures among community banks.”
Talk about falling rents … Doug in Chicago sends along this photo “a storefront in a normally bustling neighborhood retail district on North Clark St in Chicago, about a mile south of Wrigley Field”
via Calculated Risk
Even the pros are taking a beating. The Mortgage Bankers Association, its membership expert in real estate, sold its $90 million headquarters in downtown Washington on Friday for $41 million.
via washingtonpost.com.
While the commercial real estate world has cooled off so fast that it’s on the verge of a trillion-dollar implosion, instability is the only certainty. Trillions of dollars of commercial building debt is going to come due in the next few years, and not every property owner is going to be able to hang on.
