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Now See The Real State Of The Commercial Real Estate Industry
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by snuffysmith | January 7, 2010 at 12:16 pm
114 views | 4 Recommendations | 9 comments
The Commercial Real Estate sector of the economy is in the tank. Completely. Take a look at the charts that accompany this story. We are a long way from experiencing any green shoots in this sector, not to mention bank loan workouts, or any prospects for turning this sector of the economy around anytime soon.
In a recent speech, Fed Governor Duke spoke very positively about the economic recovery.
There was just one area of concern.
You guessed it: commercial real estate.
Almost since the beginning of the housing collapse, CRE has been the "next shoe to drop."
And though there have been plenty of bankruptcies and disasters, it hasn't threatened to take the banking system down.
The problem is that few folks have a good understanding about the true scale of the problem.
But to get some idea of where things stand, the Mortgage Bankers Association has just put out the latest CRE data for the third quarter. We've gone through and plucked out a few of the most interesting charts.
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Most RecentMost Recommended Comments (9)
at 12:28 on January 7th, 2010
Now the above article deals with commercial real estate. Check out the rental market in
New York City:
NYC Landlords Hit By Rent Decline Worse Than 9/11 60 percent of rental buildings slash rents. Read
Out Of Work Americans Clear Out Of Apartments, Driving Vacancy Rates To 30 Year High We've returned to "death of cities" era vacancy levels. Read
at 05:31 on January 8th, 2010
Great post, Snuffy. With all the anti government socialist takeover of the economy rhetoric lately, the ability to mitigate this looming disaster will not be easy, if at all possible. Recent revelations that the NY Fed and Tim Gietner asked AIG to leave out the payoffs to Goldman and others at par, off the filings will only make the situation more volatile. He'll be gone within 6 months tops.
at 07:13 on January 8th, 2010
He never should have been appointed in the first place.
at 07:16 on January 8th, 2010
Geithner and the AIG Emails: Scandal Is Only Tip of the Iceberg Eliot Spitzer, William K. Black, Frank Partnoy, NewDeal 2.0 Politics: Now we learn that Geithner told AIG to withhold details from the public about the billions it handed to banks during the crisis.
at 07:13 on January 8th, 2010
Reis: U.S. Office Vacancy Rate Hits 15 Year High at 17 Percent Calculated Risk, January 8, 2010 The peak following the previous recession was 16.9%.
at 12:51 on January 8th, 2010
http://www.nytimes.com/2010/01/08/nyregion/08stuy.html?ref=todayspaperThe owners of Styvesant Town and Peter Cooper Village overlooking NY City's East River are expected to miss a 16 million dollar mortgage payment due Friday. The privately held investment property is home to 20,000 NYC families.
at 13:14 on January 8th, 2010
[q url="http://www.zerohedge.com/article/stuyvesant-town-finally-defaults"] ST/PCV Tenants Association Statement on Tishman Speyer Loan Default
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at 07:23 on January 11th, 2010
Fitch: Commercial Real Estate Delinquencies Are Up 5x Already And They Still Won't Peak Until 2012 Will 12% of all loans go delinquent before this is all over? Read
at 07:25 on January 11th, 2010
As Wall Street Revels, The Foreclosure Guillotine Is Set To Fall On Millions More "Bulls hope that weak jobs data will postpone monetary tightening: a silver lining in every catastrophe, or perhaps a further exhibit of market infantilism." Read