by Rebecca Walker — December 24, 2008—With a record amount of commercial real-estate debt coming due, some of the country’s biggest property developers have become the latest to go hat-in-hand to the government for assistance, according to a story in the Wall Street Journal.
Developers are warning policymakers that thousands of office complexes, hotels, shopping centers and other commercial buildings are headed into defaults, foreclosures and bankruptcies.
The reason, according to research firm Foresight Analytics LCC, is that $530 billion of commercial mortgages will be coming due for refinancing in the next three years—with about $160 billion maturing in the next year.
Credit, meanwhile, is practically nonexistent and cash flows from commercial property are siphoning off, the Journal said. For more information, see the Wall Street Journal.
