Tantalizing Hints of a Lending Thaw
CoStar reports that large scale commercial property foreclosure meltdown appears unlikely:
First Quarter Bank Results: Potential for CRE Armageddon Fading
Weakness, Trouble Remain but Healthy Lenders Could Carry CRE Markets to Better Days
By Mark Heschmeyer
April 28, 2010
Although first quarter results of U.S. bank holding companies across the country are unmistakably downbeat about the short-term outlook for commercial real estate in general, and their portfolios in particular, they also hint at a growing sense that the problems are working themselves out.
For starters, banks generally reported that troubled loan assets were systematically moving through their books. For example, older construction loans on commercial developments and owner-occupied properties were being shifted to term loans, giving borrowers a chance to work through slow cash flow periods.
Read the full article: First Quarter Bank Results: Potential for CRE Armageddon Fading – CoStar Group.