Bay Area Real Estate Trends

So, let’s figure our room is occupied 18 days per month and has financing costs of $1,560 per month. Yikes…that’s not a lot left over for payroll, taxes, insurance, utilities, etc…

With prices and rents collapsing, it’s not surprising that more commercial properties are in default.

For many months we’ve continued to hear about the sturm und drang in the commercial real estate market. Where’s that crash we keep hearing about? It is just over the horizon, or has that sector of the real estate industry learned the lessons of the housing crash and decided to manage revaluations in a different way?

It’s not quite as epic as Stuyvesant Town, but Parkmerced is still one of the largest apartment complexes in the country…and it’s about to default.

Here is a pair of interesting articles from the Arizona Republic regarding an increase in commercial foreclosures and a slowing number of evictions in apartment complexes.

Here are some charts and commentary from the Realpoint Research Monthly Delinquency Report for January 2010. In January 2010, the delinquent unpaid balance for CMBS increased by another $4.3 billion, up to $45.94 billion from $41.64 billion a month prior. The overall delinquent unpaid balance is up 326% from one-year ago (when only $10.79 billion [...]