Are Distressed Commercial Properties Decreasing?
According to Real Capital Analytics report that not only has commercial real estate plateaued, but it has been on the decline. They reported that distressed commercial real estate in the nation is down from$ 191.5 billion in October, 2010, down to $175.3 billion currently. This, according to Real Capital Analytics, is the lowest rate since June of 2010.
Although these are good signs, there are still several billions of dollars in commercial loans that scheduled to be called due in 2011. Several banks have been willing to work with commercial property owners, allowing them to pay interest only for a period of time, some even negotiating new terms so they don’t have to foreclose on the property.
It is too early to tell exactly what these figures mean, and by no means do we have reason to celebrate. However, some optimists believe we will start to see recovery as soon as next year in the commercial market.
St. George distressed commercial properties continue to be a hot asset for investors with cash. We are seeing that most of the commercial distressed properties that are priced aggressive, usually don’t stay on the market for too long. This is a stark contrast to 18 months ago where the buyers were still sitting on the sidelines counting their money. Several of them are making their money start to work for them, and are positioning themselves to be in great shape 5 years from now.
