Is Commercial Real Estate Improving?

This is an interesting piece by ParkRecord.com about the current state of commercial real estate. It's common knowledge that for several months commercial real estate appeared to have been the local industry most severely affeccted by the recession. According to some experts, though, this is improving somewhat. While widespread commercial foreclosures were predicted, this has not occurred. Maybe the good news here is that things aren't getting worse.

Micahel Morris, executive VP for Zions Bank, says that concerns about maturing commerical mortgage debt and the effect on values through possible foreclosures has abated. Unlike some residential lenders, banks prefer to extend the life of a loan instead of foreclose on commercial buildings. Morris goes on to say that investors are still receiving a decent, though smaller, return. He also adds that while commerical properties are devalued, the drop is not as drastic as other investments, so commercial real estate is still seen as a safe investment.

Click here to read the whole article