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Commercial real estate delinquencies up 7% over last year

By Charles Perkins

Services for Real Estate Pros with Charles G. Perkins, CPA

September 18, 2009 01:47 PM

Commercial real estate delinquencies up 7% over last year

The economy is proving to be tough on businesses as well. MSNBC reports that the Federal Reserve is investigating small and large banks holding commercial real estate loans. Apparently commercial delinquencies are up 7% from last year and the Federal Reserve is reviewing bank holding to be sure that they are holding sufficient reserves and that these notes are valued properly.

High levels of unemployment have made it difficult for families to purchase goods and services. Today it was announced that those currently receiving unemployment help is at 9.7% and many others are no longer receiving unemployment assistance. This is likely to continue to be a factor in commercial real estate delinquencies.

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Barb Fischer

Big Block Realty - La Mesa, CA

San Diego and La Mesa Real Estate

Methinks it will only get worse, despite the cheery announcements the government's been making lately...

CA unemployment is now at a postwar high of 12.5%....

Thanks for your blog

Sep 19, 2009 07:48 AM

Terry Chenier

Homelife Glenayre Realty - Mission, BC

Charles,

I did a post on this and predicted that commercial real estate was the next shoe to drop.

Sep 19, 2009 05:10 PM

Charles Perkins

Charles G. Perkins, CPA - Burien, WA

Terry

I am going to go read your post. I think we are looking at some time yet before the economy really improves.

Barb

California is getting hit in a number of areas, so current unemployment claims in CA are 12.5%, wow. How many more are not able to draw unemployment now?

Sep 20, 2009 05:01 AM

Carra Riley & Declan Kenyon

Brokers Guild Cherry Creek Ltd - Westminster, CO

Helping people Transition at all ages!

It is good that people start to beoome aware of what is happening and maybe start to take some protective action if they have some commercial investment.

Thanks for stopping by the Cosmic Cow Pie.

Sep 21, 2009 07:00 AM

Carra

I agree. Those with commercial interests need to insure that they have adequate reserves.

Sep 21, 2009 06:14 PM

Brian Griffis

Realty Choice - Springfield, MO

A Financial Times article predicted this a year ago. Let's face it, there is less need for retail space, less need for office space due to downsizing, and fewer warehouses needed to house all the inventory due to just in time ordering and less demand. Where are the bright spots?

Sep 21, 2009 10:25 PM

Brian

I understand where your coming from. There is lots of bad news. We have to make our own brights spots and some businesses are doing quite well.

Sep 22, 2009 03:00 AM

Wendy Abner

Xeon International - Bradenton, FL

Right on, in fact, the ecomonic forecast on commercial deliquencies will rise higher than the residential side, can you imagine that? The next wave is coming Spring of 2010. What an opportunity to get on baord with helping these borrowers restructure their current balloons and arms that will be adjusting, or are already behind. I posted an entire blog on this today, as it is so NEW, for commercial loans to be restructured, I just got on board with a great company who has alreday been doing this with over 200 banks with great success. A WIN WIN for all, and our economy. We don't need any more major bank bailouts.Any questions, contact me.

Sep 29, 2009 06:57 AM

Wendy

Thanks for the great follow up information. I'll take a look at your blog.

Sep 29, 2009 02:05 PM

Commercial real estate delinquencies up 7% over last year

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