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Does the $700 bailout signal the end to end of financial crisis for commercial real estate?

In General Area - Asked by Matthew B. - Oct 2, 2008
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Answer(s)

Joan L.
Broker/Agent
Mebane, NC

No we've got a long way to go. I have a bearish outlook on the situation.

Oct 2, 2008
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Matthew B.
Broker/Agent
Peoria, IL

I can't complain on the lease side. I've been able to find good leasing oppurtunities for my clients in the Chicago area as national retailers scale back. Landlords are providing incentives and getting creative to get tenants in.

Oct 2, 2008
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Teresa S.
Broker/Agent
Arlington Heights, IL

Buyers and sellers of commercial real estate are waiting. Investments are on hold in the short term. Long term investment outlook is still optimistic.

Oct 2, 2008
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Teresa S.
Broker/Agent
Arlington Heights, IL

Seems like we have a ways to go. Here's an AP article from this morning:
"A prolonged downturn in commercial real estate appears more likely due to the national credit crunch and higher funding costs and equity requirements for real estate investment trusts, Goldman Sachs analysts said Monday.
In a research note, the analysts said they had a cautious forecast of the commercial real estate market. They reduced their estimates for funds from operations for REITs for the rest of the year and into the next two years, making them consistent with the flat growth of the 2001 recession."

Oct 6, 2008
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Donald C.
Broker/Agent
Dallas, TX

Another point of view:
Delinquency rates ticked up slightly in the second quarter for most commercial/multifamily mortgage investor groups, but remained at the lower end of their historical ranges, according to a new report from the Mortgage Bankers Association (MBA).
Commercial/multifamily mortgages are not seeing the same kinds of deterioration in performance that single-family mortgages, construction and some other types of loans have seen, according to Jamie Woodwell, MBA's vice president of commercial/multifamily research. "While delinquency rates for most commercial/multifamily investor groups are slightly higher over the last two quarters, it is important to remember that we are coming off record lows for the past year," she points out. "The take away is that commercial/multifamily mortgage performance generally remains strong and well within expectations."
Read the full article from Global Real Estate Monitor (see link below).

Oct 6, 2008
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Joe V.
Owner/Investor
Plymouth, MI

What financial crisis in teh U.S.? I know that sounds like I'm nuts, but I haven't seen it and I live in Michigan. Residential yes, commercial...only if you buy like you would buy residential. It all comes down to financing. Financing IS STILL AVAILABLE and at 100% LTV/100% financing. you just need to know where to look.

Nov 16, 2008
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