Commercial Real Estate May Be Less Affected Than The Housing Crises
SOURCE: The Wall Street Journal
Commercial-property downturn isn't expected to be nearly as bad as the current slump in the housing market.
The lack of over building in recent years in commercial real estate has tempered the losses to commercial building owners, lenders, and investors. This as well as most office buildings and other commercial ventures keep current on their mortgages.
Since commercial properties typically produce income, most buildings are generating enough cash to pay off their loans.
"Fundamentally the markets are in pretty good shape," says James Duca, managing director of Moody's Investors Service.
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Commercial-property downturn isn't expected to be nearly as bad as the current slump in the housing market.
The lack of over building in recent years in commercial real estate has tempered the losses to commercial building owners, lenders, and investors. This as well as most office buildings and other commercial ventures keep current on their mortgages.
Since commercial properties typically produce income, most buildings are generating enough cash to pay off their loans.
"Fundamentally the markets are in pretty good shape," says James Duca, managing director of Moody's Investors Service.
Read full report »
