Unlike in the residential real estate world, the commercial sector has not been flooded with foreclosed properties. This doesn't mean that a lot of investments didn't go bust, but for a variety of reasons, the banks holding bad loans have held back from massively dumping foreclosed industrial, office, retail, and hotel properties back into the market.
In some instances, the banks didn't want to write down the losses, and in other situations the lenders would work with borrowers by extending the terms of the loan. In either case, the result was a more moderate flow of broken commercial real estate returning to the sell-side than most people predicted.
foreclosures this year than the past couple of years.
"We do expect to see more foreclosed properties come to market in 2011 based on the fact that we continue to do the pricing of those properties for a whole array of people, from borrowers through to special servicers and lenders," says Castell.
This is not a good thing for the economy, but it will increase SIOR business.
like any other industrial or office structure, but by the same measure, a commercial property with a bad history requires a few extra touches to make it sellable.
on between the owner and the tenants.