Though the U.S. commercial real estate market is relatively strong despite an uneven economy, a mass of debt due to mature between now and 2015 gives reason for pause, according to a commercial real estate report issued today by Deloitte.
Activity has increased by just about every measure, according to the report, because of the abundance of distressed properties for sale, the growing availability of capital to finance stable assets and the growing share of funds placed in real estate investment trusts.
At the same time, it remains to be seen how commercial investors react to new government regulation, such as the Dodd-Frank Act and the Volker Rule. Moreover, refinancing is still risk because of the huge quantity of real estate loans scheduled to mature by 2015, largely held by banks already facing liquidity challenges. — Adam Fusfeld … [more]