Existing debt must be paid off for commercial sector improvement
November 25, 2009 10:23AM
In order for the commercial real estate sector to improve in 2010, it is imperative that existing debt be paid off before anything else moves forward, Marcus & Millichap president & CEO Harvey Green told CNBC on Monday. “Since many smaller and mid-sized banks have not securitized their debts, they need to communicate with borrowers that they have confidence in to bring capital to the table,” said Green. He said it’s not question of bailing out developers or whether or not the debt crisis has hit, but a question of working through existing debt. While Class A properties and “trophy” retail spaces are being bought up by wealthy foreign nations like Abu Dhabi, the B and C class commercial properties are still struggling under large debts that must be paid in order for the commerical sector to improve, according to Green.