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Old 11-02-2009, 09:02 AM
 
4,513 posts, read 4,353,361 times
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Billionaire investor Wilbur L. Ross Jr., said today the U.S. is in the beginning of a “huge crash in commercial real estate.”

“All of the components of real estate value are going in the wrong direction simultaneously,” said Ross, one of nine money managers participating in a government program to remove toxic assets from bank balance sheets.

“Occupancy rates are going down. Rent rates are going down and the capitalization rate -- the return that investors are demanding to buy a property -- are going up.”

WL Ross was among a group of firms that agreed Oct. 6 to buy $4.5 billion of Corus Bankshares Inc.’s real estate. Starwood Capital Group LLC and TPG led the group to buy the assets of the Chicago-based lender, which was seized by federal regulators Sept. 11 after its investments in construction loans for condominiums went bad.

Billionaire George Soros, speaking today at a lecture organized by the Central European University in Budapest, said a “bloodletting” may be coming for leveraged buyouts and commercial real estate.

The American consumer will no longer be able to serve as the motor for the world economy,” said Soros, 79.

Wilbur Ross Sees ‘Huge’ Commercial Real Estate Crash (Update3) - Bloomberg.com
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Old 11-02-2009, 09:21 AM
 
Location: between Ath,GR & Mia,FL...
2,574 posts, read 2,163,003 times
Reputation: 327
I agree with Ross,when money talks,bs opinions walk...
But it is all common sence,so much capacity,stiff rents,something has to give...
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Old 11-02-2009, 09:31 AM
 
4,513 posts, read 4,353,361 times
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So another 2.3 billion of taxpayer dollars down the 'weathy' drain - this admin throws around billions like they were quarters.


'CIT Files Bankruptcy; U.S. Unlikely to Recoup Money

The U.S. Treasury Department said the government probably won’t recover much, if any, of the $2.3 billion in taxpayer money that went to CIT.'


CIT Files Bankruptcy; U.S. Unlikely to Recoup Money (Update3) - Bloomberg.com
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Old 11-04-2009, 10:55 PM
 
Location: Orlando
8,253 posts, read 11,822,395 times
Reputation: 4115
And the surprise is where? Look around businesses are drying up and going away. strip centers are empty. The list of companies folding is long, circuit City, Donatos, Bennigans, sharper Image, Gm, Linens and things, Steve and Barry's, Lenox, lillian Vernon, the list is a whos who of business.

You can expect Commercial Real estate to lag behind the residential sector. So we are yet to see the worst but like residential it will rebound in time. but with fewer companies available to fill the vacancies it may take some time.... you can only have so many AT&T and Verizon stores.
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