Brokers Take a Bruising in Commercial Real Estate
SOURCE: Wall Street Journal
In a subscription article on August 22, author Ryan Chittum of the Wall Street Journal examines the declining stock prices of commercial real estate services firms, in particular CB Richard Ellis Group which "plunged 30% as the credit mess leads investors to predict a severe slowdown in property sales and worry that an economic slowdown could hurt leasing."
Mr. Chittum adds, "With the turmoil in debt markets turning into panic in recent weeks, the markets for high-yield commercial-real-estate debt have seized up, making it more difficult to finance buildings. Banks have dialed back their lending, concerned about the hefty amount of real estate loans they may have to hold on their books due to the pullback among debt buyers."
Again we're seeing a great deal of uncertainty in many aspects of the commercial market. Investments are not going to disappear, but they may become harder to find funding for, and there may be a few more brokers out on the streets looking for a new source of employment.
In a subscription article on August 22, author Ryan Chittum of the Wall Street Journal examines the declining stock prices of commercial real estate services firms, in particular CB Richard Ellis Group which "plunged 30% as the credit mess leads investors to predict a severe slowdown in property sales and worry that an economic slowdown could hurt leasing."
Mr. Chittum adds, "With the turmoil in debt markets turning into panic in recent weeks, the markets for high-yield commercial-real-estate debt have seized up, making it more difficult to finance buildings. Banks have dialed back their lending, concerned about the hefty amount of real estate loans they may have to hold on their books due to the pullback among debt buyers."
Again we're seeing a great deal of uncertainty in many aspects of the commercial market. Investments are not going to disappear, but they may become harder to find funding for, and there may be a few more brokers out on the streets looking for a new source of employment.
