Posts tagged recession
A common scenario in today’s real estate landscape is the following situation:
- A property has lost a significant part of its value due to market conditions.
- The borrower is in violation of their loan covenants and is in default
- The Lender has its own financial problems
- The Owner is out of money, ideas and alternatives
- The property is in receivership; forclosure is looming
- A sale at market value can’t produce enough proceeds to solve anyone’s problem
- Ownership is concerned over personal guarantees
- Negotiations between parties are futile and fustrating
Sound familiar? More >
There have been many articles and reports that have come out recently highlighting the improving fundamentals for the New York City office market. There seems to be a general sense that if enough people try to paint a positive picture, then the market will follow the perception. More >
Lenders and servicers continue to be inundated with properties entering special servicing, expanding from multi-family housing to office, retail and other commercial assets. As we originally anticipated, 2012 will be the major year for defaults in commercial properties, especially office properties throughout the United States. Momentum has slowed as servicers are bogged with the influx of properties. More >
Robust Recovery in 2010 Will Just Return U.S. to Middling Economy, Says NAI Global Chief Economist Dr. Peter Linneman
Strong, steady economic growth over the next two years will just return the U.S. economy to a pre-2008 level, giving us back what we needlessly lost due to government-induced panic and poor lending practices, according to a new white paper from NAI Global Chief Economist Dr. Peter Linneman. The white paper examines the overall outlook for the job market and provides a forecast for the next three years. More >
For the first time in more than two years, office vacancy rates in Manhattan are on the decline. Vacancy rates dropped from 11.6% in the first quarter to just 10.8% at the end of the second quarter as nearly 7 million square feet of space was leased across the market.
There are still millions of square feet available, and buyers/tenants currently have the upper hand in sale/lease negotiations. With an uncertain economic recovery ahead, it is unknown if this drop in vacancy rates signals the start of the end of a difficult market, or if a double-dip recession will further delay a recovery market-wide.