Industry experts are expecting a deluge of bank foreclosed properties in the commercial real estate market in Florida. And they fear that the impending foreclosure crisis in the commercial real estate market would cause even greater damage to the state’s economy than the devastation brought about by the collapse of the housing market.For the first six months of this year, Florida’s residential foreclosure filings reached a total of 268,064, making the state the second highest in the foreclosure rate ranking nationwide. The residential foreclosure activity in the state rose by 7 percent for the period.Meanwhile, industry experts said that commercial projects built since 2005, particularly those near residential developments, are most likely to become bank foreclosed properties. They noted that a growing number of commercial property owners expressed their plan to just abandon their properties, just like what most distressed homeowners did.According to experts, a bank foreclosed crisis in the commercial real estate market would push further behind the recovery of Florida. Data showed that commercial real estates, with a national total value of $6.7 trillion, are expected to see 50 percent of its loans due in the next three years.A market analysis showed that the current pace in which banks write off bad commercial loans is the fastest in 20 years. Based on the current pace, it is expected that losses on bad loans to shopping malls hotels, apartments, finance offices and other commercial properties could reach $30 billion by the end of this year.The current trend in the commercial real estate market is a cause of concern to regional and local banks which funded majority of commercial development projects in the state. Exacerbating the problem is the drastic decline in real estate values and the growing number of tenants who defaulted on their rents.Some industry experts noted that the retail industry is taking all the brunt due to lack of business and consumer interest. They estimated that about 200,000 companies and 10 percent of the country’s shopping malls will close shop in the coming year.Meanwhile, some landlords who are creditworthy are expected to struggle with payments in the near future. This is because of problems with lease agreements and the difficulty of renewing loans.Many banks in Florida learned a hard lesson from residential loans and they do not want to add bank foreclosed commercial properties on their inventory.
Article Source: http://www.articlecontentprovider.com/articlesubmit
The commercial real estate market in Florida is bracing themselves for an increase in bank foreclosed properties. Florida’s residential real estate is one of the markets in the country severely affected by the foreclosure crisis.
Joseph Smith has been educating buyers on the finer points of Bank Foreclosed at BankForeclosuresSale .com for over five years.
Please Rate this Article
5 out of 5 4 out of 5 3 out of 5 2 out of 5 1 out of 5
