Relevant:
- Report: New York Apartment Vacancies Projected to Soar thru 2018
- Occupied Commercial Space Takes a Fall as Tenants Cut Back, Go Out of Business
- A $90 Billion Debt Wave Shows Cracks in U.S. Property Boom
- U.S. Apartment Vacancies Decline to a Decade Low of 5.2%, Rents Increase
- U.S. Commercial Property Sales Trail Average as Supply Limited
2008-12-22 — bloomberg.com
"U.S. commercial properties at risk of default could triple if rental income from office, retail and apartment buildings drops by even 5 percent, a likely possibility given the recession, according to research by New York-based real estate analysts at Reis Inc.
Lenders that used optimistic rent estimates to grant mortgages beginning in 2005 stand to lose as much as $23.1 billion, or 7.02 percent, of total unpaid balances if landlords lose 5 percent of net operating income, according to Reis. Analysts examined data on 22,890 properties that together may account for unpaid loans of about $329 billion in 2009, said Victor Calanog, director of research."
Lenders that used optimistic rent estimates to grant mortgages beginning in 2005 stand to lose as much as $23.1 billion, or 7.02 percent, of total unpaid balances if landlords lose 5 percent of net operating income, according to Reis. Analysts examined data on 22,890 properties that together may account for unpaid loans of about $329 billion in 2009, said Victor Calanog, director of research."
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