The Emerging Trends in Real Estate 2010 study released last week by PricewaterhouseCoopers and the Urban Land Institute predicted 2010 will be a buyer's market in commercial real estate. Survey respondents predicted commercial property prices will sink 40% to 50% below their 2007 peaks. "Our report participants find that a sense of nervous euphoria is growing among liquid investors who can make all-cash purchases," said Stephen Blank, ULI's senior resident fellow for real estate finance.
Two-thirds of the $800 billion in CRE loans held by banks and scheduled to mature by 2014 are underwater, according to Foresight Analytics. Federal bank regulators recently issued new guidelines to help banks renegotiate and extend such loans, but regulators say not all loans will qualify for such workouts. "We will push banks to be realistic," said Tim Long of the Office of the Comptroller of the Currency.
In his second day on the job, John Goodman talks about his plans to boost sales and profitability in Sears' and Kmart's apparel and home-goods division, without completely revamping the brands. Goodman, 45, came up through the retail ranks, with a resume that includes stints at Gap, Bloomingdale's and Charlotte Russe.
Banks aren't refinancing many commercial real estate loans, but they are modifying existing loans to extend their maturities, a Federal Reserve survey found. About three-quarters of the banks said they were extending more than 25% of the construction and land development loans set to come due in September.
Developers Diversified Realty has named Daniel Hurwitz, its president and chief operating officer, as next in line for chief executive. Current CEO Scott Wolstein and Hurwitz signed new employment agreements that committed them until Dec. 31, 2012.