Strategic Mortgage Default – A Viable Option?
This article summarizes the very recent discussions on what is now a viable alternative for many homeowners
Commercial real estate’s problems: Beyond any rescue?
The U.S. government has pulled off a lot of bailouts recently, but in the deepening problems of commercial real estate, it might have met its match. It increasingly looks as if the government might have to just stand by and let bondholders and banks take huge losses on the nation’s $3.4 trillion of deteriorating debt secured by commercial properties. The problem starts with voters. When it comes to wooing votes, giving a helping hand to bondholders doesn’t work nearly as well as trying to keep families from losing their homes to foreclosure. The Wall Street Journal (11/19)(Subscription may be required)
Commercial property optimism said to be boosting banks
The word among the panelists on CNBC’s “Word on the Street” program was regional banks are gaining because the picture is brightening in the commercial real estate sector. Commercial property has a disproportionate impact on regional banks because they have significant exposure to commercial mortgages. The successful CMBS offering by Developers Diversified Realty was offered as evidence that “REITs are able to refinance.” 
CNBC
Shopping center REITs report third-quarter increase in leasing demand
Shopping center REITs reported an increase in leasing activity in the third quarter. “I think we saw signs of stabilization. Sequential occupancy increases were somewhat encouraging,” said Robert McMillan, an analyst with Standard & Poor’s Equity Research Services. “Some of the big-box space that has been vacated is being leased, so once demand picks up, that should help pricing.” RetailTrafficMag.com
Economy and Market Going to Blast Off from Here, Altucher Says
The economy is recovering nicely, says James Altucher, managing director at Formula Capital, and 2010 is going to be a huge year. Read More….
Commercial real estate is weakest sector in Fed’s Beige Book
Weak or deteriorating commercial real estate markets were reported by all of the Federal Reserve’s 12 district banks, according to the central bank’s latest Beige Book. The Fed’s regular anecdotal report found that the overall economy is still plagued by weakness in banking and increasing unemployment. Among the few bright spots in the report were observations of “stabilization or modest improvements” in manufacturing and housing.Bloomberg (10/21) , Google/The Associated Press
Commercial property faces hard times, not Armageddon
Robert Bach, chief economist at Grubb & Ellis, is one of many industry experts who reject the contention commercial real estate’s problems could bring down the entire financial system of the U.S. “These problems are focused in regional banks and the Federal Deposit Insurance Corp. has a tested method of shutting those down on Friday and opening them on a Monday under the auspices of a bigger bank,” he said. “These are not too big to fail banks. I don’t see [commercial real estate] as an unmitigated disaster. I see it as a repeat of what happened in the 1990s. …” The Business Insider
Phoenix Real Estate Experts Say Housing Slump May Be Over
Karl Guntermann, the Fred E. Taylor professor of real estate at Arizona State University’s W. P. Carey School of Business, said his data shows an increase of about 2 percent in housing prices across the Valley in September.
Report: Construction to Increase 11% Next Year
The level of construction starts in 2010 is expected to jump 11 percent nationwide, to $466.2 billion, according to McGraw-Hill Construction’s annual industry outlook.
Improvements in housing and public works construction is expected to help the industry bounce back from a 25 percent decline predicted for 2009.