With commercial real estate fundamentals still ailing from the recession and lacking clear signs of near-term improvement, investors remain focused on core assets and proven markets, according to the third quarter 2010 findings of PricewaterhouseCoopers’ Korpacz Real Estate Investor Survey®. The report highlights an improved lending environment with strong appetites from both debt and equity capital for quality real estate assets, with some surveyed investors noting a surprise at the speed at which debt availability has rebounded over the past year. Read more…
commercial real estate
Moody Ranks Albuquerque Among Top Ten Healthiest Commercial Markets
According to a copyrighted story in Monday’s™ Albuquerque Journal’s™ Business Outlook, Moody’s™ recently released Red-Green-Yellow Update indicates the Albuquerque commercial real estate market showed significant improvement from early 2009 to early 2010. Albuquerque’s™ apartment market ranks as one of the strongest in the country; however the office market continues to show distress. Moody’s™ Red-Green-Yellow Update is a quarterly report measuring risk in metros where deals were financed through commercial mortgage-backed securities.
Commercial Real Estate Largely Through the Free Fall
Regulators are keeping a close eye on bank portfolios where commercial property loans make up more than 300% of total risk-based capital, excluding loans where the borrower owns the office or plant it occupies. Some banks are having to purge commercial RE credits from their books because of various regulatory orders. It’s estimated that 20% to 40% of all U.S. banks are at or above those levels, creating opportunities for those who are below them. This article reports that there’s still room for CRE loans.
Small Business Lending Bill Advances to Senate Floor
NAR is urging the Senate to OK legislation that would create a $30 billion small business loan fund. NAR also wants the bill to allow credit unions to increase loans to commercial real estate. Similar legislation has passed the house but Senate prospects are unclear. For more information, contact Vijay Yadlapati at 202-383-1090 or vyadlapati@realtors.org.
