From 2010 to 2013 about 1,000,000,000,000 dollars of commercial real estate loans are coming due. For those of you who are numerically challenged, this is 1 trillion dollars. Not a million, not a billion, a trillion dollars. A thousand billion or a hundred thousand million dollars.

Some of this money should roll over, but there is a great deal of securitized commercial loans that will not be renewed. What will these developers do?

That is the question that should keep anyone involved in commercial real estate up at night.

And the most dangerous time for banks will be 2010 to 2013 when $1 trillion in commercial real estate loans will mature and — like homeowners before them — owners of commercial properties will need to refinance.

estimates that $236 billion in commercial real estate loans that were turned into securities will need to be refinanced in this period and that $67 billion of that amount “will be lost.”

Source: NY Post via Real Estate Bloggers

Call Now