WE ARE CLOSE BUT NOT QUITE THERE

 

REAL ESTATE NEWS

The total value of U.S. commercial real estate in distress hit $187.4

billion in the first quarter, rising significantly even as the growth rate

slowed, GlobeSt.com reported April 12, citing a Delta Associates

report to be released this week.

The figure represents a $17.3 billion, or 10%, increase from Delta’s

report on the 2009 fourth quarter, and a 33%, or $46.9 billion,

increase from Delta’s report on the 2009 third quarter, according to

the Web site.

However, during the first half of 2009, the results were doubling

every quarter. The report indicated that the rate of growth is continuing

to slow, due largely to the willingness of lenders to utilize

“pretend and extend” strategies.

The retail sector continues to be responsible for the largest segment

of the distressed market, according to GlobeSt.