Funds giving investors money back? If ever there was a red flag, and in the end a litmus test regarding the state of Commercial Real Estate (CRE), here it is. According to a just published WSJ article, Dearth of Properties Spurs Fund Giveback some real-estate funds, which raised billions of dollars hoping to pounce on […]

US commercial real estate prices as measured by Moody’s/REAL Commercial Property Price Indices (CPPI) declined 0.5% in March, the second month of falling values after a slight rebound in prices earlier in the year.“Commercial property prices have been hovering in a range 40% to 44% below peak levels for the past eight months,” said Moody’s […]

Are we seeing a trend with respect to an uptick in commercial real estate values? Perhaps …
According to Green Street Advisors’ Commercial Property Price Index (GSA CPPI), commercial property values rose 5% in April 2010.

The April 2010 gain continued an upswing that began in the spring of 2009.

The index has risen 20 percent since last year;

But remains […]

Good news, perhaps. Here’s a green shoot – with respect to the commercial real estate market that just may have sprouted.
As just reported by Sapna Maheshwari in Bloomberg’s Weekly, Inc., MetLife, the largest U.S. life insurer, said there are signs of a recovery in the commercial real estate market after property values dropped about 40 percent from […]

Commercial Delinquencies Rise Again, Data Goes Ignored: Mortgage Bankers Association
Commercial Real Estate delinquency rates for loans held >30 days rose to 5.69% (as REITs continue to hit record highs)
CMBS debt has continued to have the highest delinquency rate of all debt by sector

The news is not good in the world of commercial real estate. As they say, what went up, will come down. And it is coming down, and fast. Here are the facts; steep declines in price, supply and demand:

Prices declined: The latest release of the MIT Center for Real Estate’s Transaction Based Indices for commercial […]

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 […]