Commercial Real Estate Defaults: 2010 To 2013 Will Be Worst, With $67 Billion "Lost"

New York Post:

And the most dangerous time for banks will be 2010 to 2013 when $1 trillion in commercial real estate loans will mature and -- like homeowners before them -- owners of commercial properties will need to refinance.

Blumberg estimates that $236 billion in commercial real estate loans that were turned into securities will need to be refinanced in this period and that $67 billion of that amount "will be lost."

"We are on the brink of one of the worst commercial real estate financing markets ever," he said.

Read the whole story: New York Post

Comments

[TJCole]

10:32 AM on 05/20/2009

Wait till 2012 and the effect of the super massive black hole at the center of our galaxy upon the sun and moon and earth during the great alignment, that will be really bad for commercial real estate, "I guarantee it..!"

[tippydog11]

09:45 PM on 05/19/2009

Well thank the banks for the $67 Billion loss...only took the last 8 years. Fraud. liar loans, stealing, deception, worship of wealth etc..Who creates more socialism?..hmmm I ask corrupted capitalism?

[joebaggadonuts]

09:44 PM on 05/19/2009

The owners will simply file for Bankruptcy protection and the judges will cram down the mortgages. It's corporations after all, so the system will protect them.

[cdrach]

09:02 PM on 05/19/2009

I'm a union carpenter in Chicago and I wondered a few years ago as we built all these high rises who would have the money to fill them - its obvious now- no one

[cdrach]

08:59 PM on 05/19/2009

that wont stop Wall Steet from making huge gains from the smallest whisper of good( meaning not total crap) news and speculating up the price of oil and gas

[karen1p]

08:01 PM on 05/19/2009

I guarantee the builders and owners of these large commerial projects will be bailed out.

And all the poor "middle class" that have lost their homes will still be homeless.

[larry278]

07:47 PM on 05/19/2009

The bubbles keep breaking. Will Obama survive the commercial real estate bubble breaking? The Democrats need to find somebody to replace Obama on their 2012 ticket. An Obama for POTUS ticket isn't going to fly in 2012.
The GOP has a big lead in the race to destroy itself but the Democrats can destroy their party before the GOP destroys itself if the Democrats nominate Obama for POTUS again in 2012.
There is always some deadly, serious, fatal competition between America's 2 parties. The competition in 2012 could destroy both of the USA's parties & the USA's 2 party system too.
Talk about exciting, what will replace the USA's old 2 party system if the competition between the GOP & the Democrats also destroys the traditional US 2 party system? Do we get a multi-party system or what?

[themodernleader]

06:27 PM on 05/19/2009

President Obama: Did you consider this emerging disaster in your brilliant financial-restoration-miracle bailout? Well, I did. And I also considered the credit card debt, the deteriorating wages, the crumbling manufacturing and so on. Those are additional reasons why we should never been suckered into bailing out corrupt managers and banks filled with worthless paper..

[Lorianne]

01:55 PM on 05/19/2009

Paper assets, paper losses ... except the taxpayer input to bailout imaginary losses of imaginary assets .... that's real money ... and real money diverted from education, health care, social saftey, etc ... all to 'make whole' commercial gamblers.

[KillTheMessenger]

01:46 PM on 05/19/2009

That's what you get when you build more buildings than you can find renters for. Duh!

[karen1p]

07:59 PM on 05/19/2009

Well, perhaps when the government owns these new "condos" all of us unemployed workers will find a government backed low income rental.

[levelshot]

10:38 AM on 05/19/2009

And beneath the tip of the iceberg is....