Distressed commercial real estate in retreat? - The Washington Post

Distressed commercial real estate in the United States — including properties in default, foreclosure or taken back by lenders — totaled $171.6 billion in October 2011. That is a dip from the recent past.

The level of distress began to plateau when it reached $191.5 billion in March 2010, and it has stayed in the $175 billion to $190 billion range until now, according to data from Real Capital Analytics.

We think those levels should continue to come down in a meaningful way in 2012 and beyond, assuming interest rates cooperate and economic expansion accelerates. The real test of the distress plateau is likely to be seen in 2012 and 2013, when about $300 billion in loans comes due each year.

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