In 2008, Marion Moskowitz was very concerned. She and her husband, Dave, had recently purchased a 225,000 square foot former textile mill for $2 million and were in the process of converting it into multi-tenant use. At the time their project, Franklin Commons, had only four tenants, leasing a total of 20,000 square feet. Meanwhile, [...]
Real estate investors typically have longer investment time horizons than investors in publicly traded equities, bonds and funds. While it is possible to buy and sell a stock within a few hours, and typical to liquidate these investments within several months, real estate investments are typically held for a decade or more. Consequently, it makes [...]
I recently published an article on the commercial real estate market, Is Commercial Real Estate Recovering?” In this article I will examine residential real estate.
It is difficult to forecast a bottom of the housing market because of the “shadow” market and government and legal issues which thwart foreclosures.
While some markets are [...]
Fitch reported today that commercial real estate (CRE) values continue to decline giving rise to greater loan losses on CRE. On the average throughout 2009, lenders recovered 43 cents on the dollar on distressed loans. They see the loss rate only going up.
The average loss severity rate or the ratio of realized loss to [...]