An extended decline in the commercial real estate market could spur more unemployment and wreak havoc on local banks, Fortune senior writer Colin Barr said in a CNNMoney segment. The question remains, he said, how steep the price declines in the commercial market will be in the next year. “There’s no financing available. A couple years ago it was possible to get big loans… and now it’s very difficult to get any financing above $15, $20, $25 million,” Barr said. This trend could have a devastating effect on building owners, as many large commercial properties need to refinance frequently. Barr said that the government is promoting Term Asset-Backed Securities Loan Facility for this reason — a lot of commercial real estate financing comes from securitization markets which remain frozen, for the most part.
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Questions surround commercial real estate market’s impact
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