While there’s reason for optimism in the area’s commercial leasing market, Miami commercial real estate profession believe sales will remain stagnant for at least two years.
But it’s not for a lack of demand.
According to Miami Today, at a recent panel conducted by the Commercial Industrial Association of South Florida in Coral Gables, a group comprised of about 200 real estate brokers, the stagnant commercial lending environment is punishing the market, and lending standards won’t loosen for some time.
Investors want to make deals while property values are low but simply can’t get financing, Miami Today said.
Even distressed sales, which wouldn’t require as much cash, are being held up by federal regulators, due to loss-share agreements between banks and the Federal Deposit Insurance Corp.
“A lot of investors are on the sidelines waiting to buy troubled assets because of FDIC policies,” said, Marti Mang, senior vice president of corporate lending at TotalBank. [Miami Today]