More .mercial Properties On Lists Of Bank

Real-Estate The foreclosure problem that has devastated the housing market in California for the past two years continues to forge ahead, leaving behind on its path an increasing number of abandon and vacant homes. But the problem is not confined anymore to the housing market as an increasing number of .mercial properties are placed on lists of bank foreclosures. Going around California, one could see an empty automobile dealership in Oakland, an unfinished and vacant housing development in Pittsburg and isolated hotels in Brentwood. All of these are mute testimonies to the unabated foreclosure problem that has infected the regional economy. From October 2008 to March 2009, .mercial properties totaling $784 million were placed on lists of bank foreclosures. Economist Christopher Thornberg of Beacon Economics said that the increase in .mercial real estate defaults represents a huge problem. Industry experts agree that the rise in .mercial real estate defaults poses a challenge to the states economy. They explained that undeveloped, stalled or partially built .mercial projects brought about by bankruptcy or foreclosures can weaken a .munitys economic growth. Additionally, existing .mercial projects that are in danger of being placed on lists of bank foreclosures may not attract new businesses or retailers to a city. And buildings that failed to be developed or .pleted because of financial difficulties may mean fewer construction jobs. Colliers International senior managing partner Edward Del Beccaro believed that the problem in the .mercial real estate market will get worse if the rising unemployment rate will not be addressed. He said that fewer employees mean businesses need less space. And space means rent fees which translate to mortgage payments. In the first quarter of this year, the number of .mercial properties on default increased significantly .pared with the fourth quarter figures the previous year. In the second half of 2008, many East Bay projects, including office, retail, hotel, land projects and mixed-used, went into default. The final quarter of 2008 saw delinquent .mercial property loans totaling $309.5 million in East Bay. Furthermore, .mercial defaults in the first three months of this year reached a total cost of $473.3 million. Areas with a high rate of .mercial properties on lists of bank foreclosures are Brentwood, Bethel Island, Bay Point, Concord, Clayton, Castro Valley, El Cerrito, El Sobrante, Livermore, Fremont, Oakland, Orinda, Hayward, Martinez, San Leandro, San Ramon, Richmond, Pittsburg, Walnut Creek and Union City. About the Author: 相关的主题文章: