Commercial real estate is not doing well in Cochise County as in the rest of the state and county. The vacancies in Benson are typical for other towns in the county. So lets look at Commercial Real Estate – the numbers.
- As of September 30, 2009, US banks held $1.3 trillion in mortgages on commercial property.
- Industry specialists believe a majority of the loans are “underwater”.
- Loans worth $60.5 billion were delinquent in September.
- $150 billion worth of mortgages come due in 2010.
What does this mean?
Refinancing these loans will be nearly impossible for rents are down and the value of the property has fallen. Banks holding commercial paper will face the decision to restructure these loans or foreclosure with foreclosure being a least desirable outcome.
Refinancing these loans will be nearly impossible for rents are down and the value of the property has fallen. Banks holding commercial paper will face the decision to restructure these loans or foreclosure with foreclosure being a least desirable outcome.
The one hope is that the economy continues to revive and the unemployed find jobs. Recent upticks in consumer confidence is a plus. Moving the economy is like driving a cruise ship with a trolling motor, results come painfully slow.
Don Grafues
Resource: REALTOR.org
Resource: REALTOR.org
