Commercial Real Estate | Dead Or Alive?
Real Estate February 7th, 2011Is Commercial Real Estate Dead or Alive?
Positive reports in the press today about commercial real estate climbing in the final quarter of 2010. According to a Moody’s investors Service study commercial property markets across the U.S. Were stable or even showed moderate improvement during the 4th quarter last year. The commercial home market has been devastated since the beginning of the ‘recession ‘ due to reduced occupancy rates and renters falling behind on payments in the tricky economic times.
More Commercial home market discoveries 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).
So it looks like the commercial real estate sector seems to be alive and headed toward recovery, at least for the time being. Only time will tell if this improvement lasts.
