commercial real estate market perks up!

April 22, 2010 — Leave a comment

the new darkest cloud over the economic recovery may be clearing up a bit as prices of commercial property are up slightly compared with last fall.  however, the most exciting news is that investors and banks are slowly getting back into the market – the commercial mortgage-backed securities (cmbs) market that is!  listen to these staggering statistics – in 2007 a RECORD $230 Billion in securities were issued.  now, compare that with 2009’s total of $3 Billion and one can easily draw a conclusion – if loans aren’t being made then sales aren’t happening….and if sales aren’t happening then prices drop….that whole supply/demand principle kicks in.  the good news??  we’ve already surpassed last year’s total number here in the Q1 with $4 Billion.  the good news part II – if loans aren’t being made then commercial owners are hard pressed to refinance their 3, 5, & 7 years notes….over the last couple of years if an owner cannot refinance and the bank calls the note due OR his/her rate jumps = foreclosure = depressed value.  with money flowing BACK into the commercial mortgage-backed securities market there will be more lending opportunities for the borrowers. 

read the whole USA Today article here – http://tinyurl.com/y74vvf6

according to cole the real estate sky is NOT falling!

much success! – cole

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