Commercial Real Estate August 2012
As we are approaching the end of an economic meltdown that witnessed one of the worst collapses in commercial real estate all over the nation, the constant arrival of massive portfolios of the bank-owned commercial properties is still a concern for this sector’s future. The misfortune of theses commercial property owners, on the other hand, has attracted many investors who’re looking to take advantage of these rock bottom prices into the recently emerging commercial REO market.
Although the tight credit has been a detouring factor in the past, but finally commercial lenders are slowly, and ever so cautiously, opening their doors to the new loan applications. This could be the fuel necessary to reignite the construction industry. One of the main obstacles in re-starting the commercial property construction is the large portfolio of underpriced commercial properties that needs to be picked up before a new construction makes sense. This is in a sense identical to what residential property market forced to face with. The solution still remains in the availability of credit for purchasing the bank-owned commercial real estate properties. Ease of credit will to eventually relieve the market from the cheap foreclosed assets and open the gates to the new construction properties. Simply put, as long as there are existing properties priced at less than the replacement value it would not be economically wise for the developers to start new construction of commercial projects.
With the global network of affiliates in Europe, Asia, Africa and the Middle East and main offices in the US, Smart Pre-Construction
offers many commercial property opportunities to the interested international buyer, while welcoming developers to market their new projects through a well-established company to a wider international buying pools.
to take advantage of these rock bottom prices