Experts: New York Commercial Real Estate Is In The Crapper
2009 was apparently a very, very, very bad year for commercial realtors in New York. Eastern Consolidated Real Estate Investment Services reports that commercial property sales for the year were down 76 percent from 2008 -- $23.6 billion to $5.6 in total sales.
The Times says today that "more than 180 major buildings totaling $12.5 billion in value... face foreclosure or bankruptcy, or have had problems making mortgage payments," or other similarly dire problems.
It's not just a local problem. Nationwide, more than six percent of commercial mortgage loan payments are 30 days or more delinquent, and defaults on such loans more than doubled to 3.4 percent in the third quarter. But due to the high numbers hereabouts, it's that much worse in New York.
The Times' experts point to the slow return of jobs, and complexity of financial arrangements (leading to "ownership disputes" among several parties) at the high end of the market, among the causes of the mega-down market.
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