Commerical real estate losses to slam GE Capital in 2010

December 9, 2009

Editor’s Note: A 13% drop in commercial real estate may be too conservative still for 2010.  I keep hearing very bullish comments from analysts but we still have interests at records lows and that can not go on forever.  Unemployment did notch down because of seasonal jobs but that still is not a permanent [...]

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How A Government Bailout Created Today’s Commercial Real Estate Crisis

November 18, 2009

Editor’s Note:  This is a piece that covers a decent span of time and shows some of the events and regulations or deregulation that took place to create the current situation in the U.S. commercial property market.  A majority of the bank failures in 2009 had to do with overexposure to commercial loans connected to [...]

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U.S. commercial real estate to bottom in 2010 according to survey?

November 6, 2009

Editor’s Note: This is the most optimistic survey so far on the U.S. commercial property market.  We have seen an estimate as far as 2016 for a recovery.  If we are looking at unemployment not peaking until “atleast” the second quarter of 2010 (I believe 2011 or 2012 to be realistic), I don’t see businesses [...]

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CapitalSource posts $274 million loss citing commercial loans

November 4, 2009

Editor’s Note:  Most interesting piece of this news piece is that they increased their commercial loan loss reserves by over 100% .  This tells me they are anticipating many more losses going forward from their commercial loan inventory.
Business Journals, Washington D.C.:
The company’s $221 million third quarter loan loss provision, which it set aside to cover [...]

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“Double Bubble” means the commercial real estate is next to pop

October 23, 2009

Editor’s Note: The calls are getting louder with MSNBC taking about the impending collapse of the U.S. commercial real estate market.  In the article they quoted that in 2006, 54% of the regional and local banks portfolios were made up of commercial loans compared to only 40% a decade before.
With values declining, many commercial [...]

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Regulators give guidence to banks on troubled commercial real estate loans

October 15, 2009

These banks are going to need to start restructuring these deteriorating commercials loans or risk defaults and even larger write-downs.  That will lead to the FDIC stepping in and closing the bank.  I am surprise the banks are not lobbying Congress more loudly to get a program in place to refinance these loans.
The problem I [...]

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Capmark Financial preparing for bankruptcy soon

October 13, 2009

Editor’s Note:  After reading the tone of this press release, it comes to my attention that this bankruptcy might of been part of the plan so they could reorganize the debt and later down the line become profitable because the debt was at a much more manageable level.  It would be hard to believe with the [...]

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Commercial real estate to drive more U.S. bank failures

October 13, 2009

Editor’s Note: The drumbeat is getting louder for commercial real estate being the next leg down.  If you have followed this site since it went online, it said been repeated over and over again.  Many local and regional commercial banks are taking huge losses on their commercial loan portfolio because of defaults on behalf [...]

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