While you might not think that bank regulators beginning to pressure lenders to deal with non-performing loans is a good thing, the fact that this trend is increasing is making the outlook cheerier for commercial real estate investors. According to PricewaterhouseCoopers LLP (PwC), more and more lenders are being compelled to address and resolve issues with non-performing commercial loans. And that, say analysts, means that the commercial real estate industry is on the mend. Commercial investors are responding by acquiring assets and “seeking opportunities across all commercial real estate sectors,” reports PwC.
In fact, in the second quarter of this year, international sales of commercial real estate have “soared” by 47 percent year-over-year to $101 billion, with the United States experiencing strong growth and a 56 percent increase over the first quarter of this year in its own commercial sector. As regional panels across the country discuss – and agree – that a commercial recovery for the country is likely around the corner, some experts warn that the commercial market is still very much a “two-tiered” environment in which some properties will begin to gain in value while others remain undesirable. Do you think that we are at the beginning of a recovery? Are you getting involved in the market at this time?
Thank you for reading the Bryan Ellis Real Estate Letter!
Your comments and questions are welcomed below.