Posted on Thursday, December 31, 2009
For anyone who questions whether or not there is a looming commercail real estate crisis...
Just under $400 billion in CRE matured this year and we are already seeing issues...many are only in the beginning stages of the default and forelcosure process now. Many presumed workouts will fail.
ANOTHER $400 billion in CRE loans matures this year.
YET ANOTHER $425 billion matures in 2011.
AND ANOTHER $400 billion in 2012 and 2013 each.
Most of this is held by banks.
Translates to 4 times what we're already beginning to see now in terms of commercial forelcosures and bank failures.