From the Dallas Morning News:
Value of Dallas-Fort Worth area commercial properties have declined, and as a result, a rising number are facing foreclosure. “Every commercial real estate building in the nation has lost 30 percent of its value,” said Dr. Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University. “And the buildings in this town have been impacted.” The number of commercial real estate deals posted for foreclosure has grown more than 10 percent so far this year. Industry leaders worry this is just a preview of what is to come. “The vast majority of buildings bought after 2005 are absolutely not worth the debt,” said Paul Whitman, president of commercial real estate firm Jones Lang LaSalle’s Dallas office. “Don’t be shocked that there will be hundreds of millions of dollars in foreclosures in commercial real estate in 2010.” Whitman and Dotzour said lenders are in many cases delaying commercial foreclosures and repricing properties. Watch for “Bad for Business: Commercial Real Estate Faces Uphill Climb,” coming in the October issue of Tierra Grande http://recenter.tamu.edu/tgrande magazine, the Real Estate Center’s quarterly journal. It will be posted on the Center’s website in early November.
