It’s amazing what does not get widely reported …Here’s a news positive blurb that just may be an answer (or at least a good jump start) to head off the potential Commercial Real Estate (CRE) collapse and the related demise of small to mid-sized regional banks with huge commercial loan porfolios.

In January 2010 a little noticed bill was introduced […]

Real estate related loan auctions for 2009 show that non-performing CRE debt traded at a premium to non-performing residential real estate debt. Non-performing CRE debt sold for 37% of book value on average, while non-performing residential debt sold for 23% of book.

The thing that is striking though is that when both loan types are performing, there […]

On February 10, 2010 the Congressional Oversight Panel issued a most amazing and eye-opening report entitled: Commercial Real Estate Losses and the Risk to Financial Stability.
Here a quick executive summary — directly from the source – that should be read very carefully. Keep in mind, this is what the government’s oversight panel is concluding; not […]

The January 2010 Moody’s CMBS delinquency rate hit a record at 5.42%, after posting the largest one month increase (50 bps) in history.
While the deplorable state of CMBS is not a secret to anyone following RealPoint’s monthly delinquency data, getting confirmation from a procyclical firm such as Moody’s should be enough to wake up some […]

We normally would NOT reproduce language from a prospectus filed with the SEC. HOWEVER the following language is culled directly from a very interesting and timely filing made by First Mariner Bank on Tuesday (2.9.10).
It is so related to our recent posts – regarding the collapse of the commercial real estate market and the heavy-weight […]

Here’s what MarylandCommercialTitle.com has been saying for more than two (2) years now. Could this truly be our reality?
Over the next several years, a watchdog group concludes that failed commercial real estate loans could litter American cities with empty stores and office complexes, cause hundreds of bank failures and weaken the economy.
Banks face up to […]

Many said the economy is finally on the rise, after the quake of 2008. Perhaps that’s true in some sectors, but with respect to Commercial Real Estate (CRE), the shock-waves are getting much worse than initially imagined.
To put everything into perspective, in 2009 (a year many said was a horrible year for CRE), only […]

We have been searching for even a sintilla of good news, when it comes to the real estate market.  
With regard to commercial real estate, one noted real estate attorney has coined the banks recent leding philosophy as “extend and pretend.” Clearly there exists the “fear of catching a falling knife.”
So the question is, are things really getting any better? […]

Tea Leaves: The WSJ reports today that delinquencies among U.S. commercial mortgage-backed securities (cmbs) surged to by a record amount in September 2009, according to Moody’s Investors Service, highlighing the ongoing trials and tribulations of the commercial real-estate market.
Occupancy rates and rents are falling, which, coupled with an inability to refinance debt, is resulting in an […]

The WSJ just posted a Blog entry today regarding the commercial real-estate sector, The Most Toxic Loans in Commercial Real Estate. The gist of the discussion addresses the pressing reality that not all commercial real-estate loans are created equal.

In Wednesday’s Journal they reported that U.S. banks have been “slow” to take losses on battered commercial […]