BusinessWeek reported on March 28 that U.S. Lenders are collapsing at the fastest pace in 17 years. Paul J. Miller an analyst at FBR Capital Markets in Arlington, VA, attributed the failures largely to “smaller institutions” failing due to a lack of access to capital because of too much focus on “residential construction and commercial real estate.”
At first glance, this might seem like pretty bad news for commercial real estate investors. However, the last weekend’s $320.3 million drain on the FDIC could actually represent the growth of a huge opportunity for real estate investors who can navigate the choppy waters of today’s commercial real estate market.
While many landlords and retail property owners are, admittedly, losing their shirts, a new breed of commercial investor is appearing on the scene with a new way of making commercial real estate work and keeping tenants in their properties.
These investors have funding, but they are focused on running their businesses and may not have time to track down new deals. Many of them are actually seeking new commercial real estate properties, but simply do not have the time to evaluate the plethora of opportunities that are predicted to flood the market in the next few months.
If you are a commercial real estate investor, then 2010 can be a great time for you – but a little creative thinking will be necessary!
Thanks for reading http://realestate.BryanEllis.com – your comments are welcomed in the space below.
The lenders couldn’t be closing the fastest in the last 17 years. If this were true Obama’s cronies would tell us about it.
The TARP took care of all of this and The Stimulus package and the Jobs Bill have fixed everything else. Not to mention now we do not have to worry about Health Care for the rest of our foreshortened lives!
No there must be and error somewhere this just could not be happening, they would not let it happen in our current Nanny state. We would just borrow more MONEY from China and fix this problem too. After all isn’t COMMERCIAL too big to fail also?
Byron, just say it ain’t so!!
I have been hearing about this wave of commercial foreclosures. The difficulty is going to be dealing with the banks. I have been told that the commercial loans are fractionalized ie. one major bank as the larger loan amount and smaller community banks have smaller portion. To do a short sale or negotiate the smaller community or smaller loan party has to agree to have their loan wiped out. This is something that they don’t want to do. I would be hearing others insights into this arena.