Categorized | Commercial

Commercial Real Estate Growth Stunted by Financing Issues

Please Share!

Growth in the United States commercial property market has significantly slowed down in the past two months due to financing difficulties within the country. With fears growing regarding the overall United States economy, as well as the debt crisis taking its toll on Europe, many commercial banks are becoming restrictive when it comes to giving out loans.

Many banks are still trying to rid themselves of troubled loans, and amidst worries that the United States economy may take another turn for the worse; the banks have become far less likely to issue new loans due to the uncertainties.

While real estate investors are not shying away from every city, many have opted to look for international commercial properties. Aside from cities like New York City, real estate investors are looking to take upon new investments outside the United States, and rather in areas like Shanghai and Abu Dhabi. Nations such as Brazil, India, and Russia have been the ideal choices for commercial property real estate investors due to their booming economies.

Not all commercial property real estate investors are looking overseas. Those investors that prefer distressed assets believe that the United States offers far better deals and opportunities than the growing nations of Brazil, China, Russia, and India. The reason for this perspective is that many commercial properties have had such significant price drops that it is far cheaper to buy distressed real estate than it is to invest in a new property that must first be built.

While real estate investors have differing strategies, the majority agree that the current real estate market is in serious distress, and that all the wrong strategies have been taken to improve it.

Please Share!

About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

Leave a Reply

Twitter Chat