Current Events in the World of Industrial Property

The Can Cannot be Kicked Forever!

09 Aug 2011 |  Posted by griffin |  0 Comment.
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Great Buying Opportunities Ahead.


Over $2 Trillion of commercial real estate (CRE) debt will mature by 2020.

Here are the facts:

  • On average, $275 Billion of CRE debt coming due every year for the next six years.1
  • Currently, approximately $685 billion in CMBS loans are maturing between now and 2018.1
  • Banks have $1.1 trillion in core commercial real estate loans on their books according to the FDIC, another $590 billion in construction loans, $205 billion in multifamily loans and $63 billion in farm loans.2
  • The period of 2011- 2017 will be one of unprecedented stress in the CRE market, and a time in which banks will continue to take massive losses.2
  • Nearly 68% of loans in the next 4 years will not qualify for a refinancing at maturity.2

Sources:
1 – Foresight Analytics
2 – www.zerohedge.blogspot.com

The enormous amount of maturing debt will continue to affect the CRE market through 2020. We believe this will prove to be an excellent period for acquisitions.




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