Experts: New York Commercial Real Estate Is In The Crapper
The Times says today that "more than 180 major buildings totaling $12.5 billion in value... face foreclosure or bankruptcy, or have had problems making mortgage payments," or other similarly dire problems.
It's not just a local problem. Nationwide, more than six percent of commercial mortgage loan payments are 30 days or more delinquent, and defaults on such loans more than doubled to 3.4 percent in the third quarter. But due to the high numbers hereabouts, it's that much worse in New York.
The Times' experts point to the slow return of jobs, and complexity of financial arrangements (leading to "ownership disputes" among several parties) at the high end of the market, among the causes of the mega-down market.