In spite of recent rosy reports of a recovery in commercial real estate (see MIT commercial property price index posts first increase in over a year) the bottom is a long way off as unemployment continues to climb into the double digits.
There is no recovery for commercial real estate when jobless numbers are increasing. In order for rents to stabilize and prices to recover, people have to get back to work.
A report published by the Urban Land Institute and accounting firm PricewaterhouseCoopers LLP predicts that nationwide commercial real estate vacancies will continue to increase and rents will decrease across all property sectors before the market hits bottom in 2010.
The report was based on interviews and surveys involving some 700 industry professionals around the country. Participants projected national value declines of 40 percent to 50 percent off 2007 market peaks. Survey participants also believe that 2010 and 2011 will present buying opportunities at or near cyclical low prices.
This creates an opportunity for professionals who have experience in this area to offer commercial loan modification services to property owners. Leadsnet Inc., has set up a website (http://www.commercialmodification.com) for commercial property owners to get connected with industry professionals who can offer loan modification services.
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