The Real Deal Miami

Commercial market distress: On target or overhyped?

September 09, 2009 03:55PM

Many financial experts have speculated that the banks heavily invested in commercial real estate could soon suffer due to persistent unemployment and continuing distress in the market. Bill Procida, of William Procida, and Lee Munson, chief investment officer with Portfolio, spoke with CNBC‘s Maria Bartiromo about whether this outlook is too pessimistic. “I think that the Armageddon that we were afraid [of] in the banking industry is not going to happen in commercial real estate,” Munson said. But Procida, however, said he believes that commercial real estate is in for a rough ride when loans come due. “We’ve got a lot of mortgages coming due that were, 90 percent of them, [at] inflated values,” Procida said.