Commercial Real Estate

Is Commercial Real Estate Dead or Alive?

Positive news in the press today about commercial real estate climbing in the final quarter of 2010.  According to a Moody’s Investors Service study commercial real estate markets across the U.S. were stable or even showed moderate improvement during the 4th quarter last year.  The commercial real estate market has been devastated since the start of the ‘recession’ due to reduced occupancy rates and renters falling behind on payments during the tough economic times.

More Commercial Real Estate Market findings from the Moody’s study:

“The ratings agency said six of the seven property types in U.S. commercial mortgage-backed securities had ‘yellow’ scores last quarter–which indicates middling strength. Six of those showed some improvement, while only the multifamily sector had a strong score, which was unchanged.

Moody’s said the limited-service hotel and suburban office sectors showed the most improvement during the latest quarter. The five best markets in the U.S. were Honolulu, New York City, Los Angeles, the District of Columbia and California’s Orange County.

“The commercial real estate markets are continuing down the road to recovery, though the fact that most markets remain yellow indicates that a comfortable point of stability has not yet been reached,” said Moody’s Vice President Keith Banhazl.”

From: DOW JONES NEWSWIRES, “Moody’s: US Commercial Real Estate Markets Show Improvement” http://online.wsj.com/article/BT-CO-20110120-712274.html January 20, 2011 (Accessed January 20, 2011).

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