Federal Reserve Focusing on Commercial Real-Estate Recession as FOMC Meets
Editor’s Note: Ben Bernanke’s assessment is spot, we can not call it a recovery if we have commercial real estate tanking as well. Not to mention the Prime and Alt-A home mortgages that having rising default levels. According to the Bloomberg piece, commercial property values have fallen 35% since Oct. 2007. In the article it states $165 billion in commercial loans will be coming up for refinancing. This is the next shoe to drop.
News (Bloomberg):
The collapse in commercial real estate is preventing Federal Reserve Chairman Ben S. Bernanke from declaring the economy and financial markets are healed.
Red Roof Inns defaults in $361 million commercial loans
Editor’s Note: Hospitality is being hard hit right now in the U.S. economic downturn. We will likely see more defaults and more downward pressure on commercial real estate focusing on retail and hospitality. Commercial real decline will the story of 2009 and 2010.
News (Reuters):
Red Roof Inns Inc, the discount hotel chain with nearly 350 properties, became the latest in the downtrodden hospitality industry to default on debt made during the credit-driven real estate boom, the company confirmed on Tuesday.