Not
convinced about the severity of the commercial
foreclosure and commercial bank-owned future?
Download the
Emerging Trends 2010 report
Loans are
defaulting, vacancy rates are rising, commercial real
estate financing is shrinking, and the industry is
seeing more and more commercial loan defaults.
Foreclosure issues that plagued the residential real
estate market are taking serious aim on commercial real
estate and the writing is on the wall: massive
amounts of commercial foreclosures, commercial REOs,
commercial bank owned properties are on the
immediate horizon.
We're
already seeing commercial real estate property values
plummeting and it's about to get worse. Loan defaults
are soaring with no financing in sight. Cash flow has
taken a hit resulting from rising vacancy rates combined
with declining rents. Is there an area in your town
where you don't see "For Lease" at just about every
shopping center or office park? And new commercial
construction? Forget about it!
Commercial real
estate loans are coming due at a total of $3.5 trillion
in commercial mortgage-backed securities and debt with
commercial real estate as collateral. Take all of this
together and you have a perfect storm for disaster in
the commercial foreclosure market nationwide.
However, there's plenty of vulture money out there set
to take advantage of the situation and pounce when the
timing is right.
We are looking to work with those entities and help
investors and lenders alike weather the upcoming storm.
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