Commercial Real Estate Trouble Ahead

by

The Congressional Oversight Panel for the Troubled Asset Relief Program, in a report issued yesterday, predicted that banks could see up to $300 billion in losses on their commercial real estate portfolios, and warned the threat this poses to the US financial system was completely overlooked by the Capital Adequacy Program (Cap) stress tests in early 2009.

Between now and 2014, “$1.4 trillion in commercial real estate loans will reach the end of their terms. Nearly half are at present underwater”, the report said.

Advertisements

One Response to “Commercial Real Estate Trouble Ahead”

  1. lighthouseas Says:

    The health of commercial real estate is a real threat to this tenuous economic recovery. If the valuation and equity gap issues can’t get resolved I can see a double dip.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: