The Financial Times wrote about the astonishing amount of commercial debt coming due in 2012. In addition, all the five to ten year leases that were written at the height of the market (2007), expire over the next five years.
Facts to Consider:
US commercial property values have dropped 42% since 2007.
“A large majority of loans originated in 2007 are currently under water.”
Approximately $233B in CMBS loans were originated in 2007, compared with $32B in 2011.
There are $69.9B of CMBS loans set to mature in 2012.
"It is unclear where the capital will...
After visiting Atlanta, Dallas, Chicago, and New Jersey over the past 5 weeks, we definitely agree with the below article. We have heard first hand that the overall industrial market should expect to see continued positive absorption in 2011.
By Paul Bubny
NEW YORK CITY-Absorption across the 34 industrial markets tracked by Cushman & Wakefield turned positive at the end of 2010, for the first time since the second quarter of 2008, the firm said Tuesday. Along with an uptick in leasing, a 74% year-over-year decline in new construction proved to be a boon in terms of industrial vacancies.