While it is hardly recent news at this point, more financial experts have weighed in on the struggles they expect the commercial real estate market to encounter in 2010 as delinquencies and foreclosures continue to mount in the new decade.
According to Ira Friedman, the COO of Guardian Solutions, more and more commercial mortgage types have fallen into distress and foreclosure every week. Referencing a report from Trepp, a national real estate researcher, he added that delinquent loans in commercial mortgage securities had increased 0.85 percentage points over the last month to hit 5.65 percent.
"Based on my experience, the worst thing that a property owner can do now is to ignore his situation and hope that things get better," he added.
The prospects of commercial real estate improving was not expected too good either, as many expect the industry to continue its struggle with delinquencies well into 2010,
"Not since the early 1990s have we observed this perfect storm of deteriorating rents and occupancies, deflating sales prices, and tight credit that’s leading to a lot of defaults," writes Victor Calanog, director of research at Reis, a real estate research organization. "With close to $3.5 trillion of loans outstanding and at least 12 to 24 more months of rent declines, I expect to see more commercial properties defaulting on loans."
