Distressed commercial real estate is slowly climbing down from the heights it reached in October 2010, of $191.5 billion. Forthcoming figures by Delta Associates and Real Capital Analytics will show that distressed commercial real estate in the US totaled $166.9 billion in January 2012, down $4.7 billion since October 2011. “We think the decline in distress has begun and will continue in a meaningful way in 2012 and beyond if interest rates continue to cooperate and economic expansion picks up pace,” says the report, authored by Greg Leisch, president of Delta Associates.
The decline in distress is attributed to a mix of circumstances, starting with extend and pretend. Also, commercial valuations have begun rising in most metro markets, nudging properties up above the water line. In a separate report released last week by Green Street Advisors, it found that its Commercial Property Price Index was unchanged in January—namely that commercial property values have stalled over the past several months. A low-return environment, the primary catalyst for earlier gains, is still here, it says, but an uncertain economic outlook has held back gains for now.
Read more...GlobeSt.com - Distressed CRE Continues to Ebb - Daily News Article
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