Banks allow for more write-downs of commercial real estate loans

New York /
Oct.October 10, 2012 01:15 PM

More lenders are allowing write-downs for outstanding loans that were given to commercial real estate investors. Analysts attribute the trend to improving rental and vacancy rates, among other factors, the New York Observer reported.

“First of all, the banks’ balance sheets are a lot stronger today than they were in 2009 and that gives them a lot more capacity for doing this,” Robert O’Brien, Vice Chairman and U.S. Real Estate Services Leader at Deloitte, told the Observer. “And, besides that, we’re just seeing better fundamentals.”

In addition, Kenneth Weissenberg of the accounting firm EisnerAmper told the Observer that the market keeps opening up as rating companies, such as Standard & Poor’s, alter how they rate properties as well as certificates linked to commercial mortgage-backed securities.

The Observer said that JPMorgan Chase was among the financial institutions allowing for more write-downs. [NYO]


Related Articles

arrow_forward_ios
Ascena owns Ann Taylor, Lane Bryant, Lou & Grey and Cacique. (Getty)
Ascena restructuring approved post-bankruptcy
Ascena restructuring approved post-bankruptcy
Apollo Global Management will take over craft retailer Michaels in a deal that values the company at $3.3 billion. (Wikipedia Commons, iStock)
Craft retailer Michaels to go private in $5B deal
Craft retailer Michaels to go private in $5B deal
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)
JLL gets in rental home business
JLL gets in rental home business
Mack-Cali Realty CEO Mahbod Nia and MaryAnne Gilmartin (Photos via Mack-Cali Realty)
Mack-Cali Realty names Mahbod Nia as CEO
Mack-Cali Realty names Mahbod Nia as CEO
The comedy club argues that if SNL can operate, then they should be allowed to operate too. (Getty)
Manhattan comedy club sues Cuomo over pandemic closures
Manhattan comedy club sues Cuomo over pandemic closures
(iStock)
These were Manhattan’s best office submarkets in Q4
These were Manhattan’s best office submarkets in Q4
(iStock/Illustration by Alexis Manrodt for The Real Deal)
Order up: Real estate investors line up to buy drive-throughs
Order up: Real estate investors line up to buy drive-throughs
Mayor Bill de Blasio (Getty, iStock)
NYC to revive $17B in public construction projects
NYC to revive $17B in public construction projects
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...