Commercial real estate industry seeks U.S. taxpayer money

December 24, 2008 by · Leave a Comment
Filed under: Real Estate News 

Well if this is what the American public wants then we should bailout everyone and any failed businesses between now and 2001.  Its just absurd the amount of lobbing that is happening right now and it shows that our elected officials only respond if you have enough money to matter.  Our founding fathers must be rolling in thier graves right now with the direction and almost total disregard for the founding principles of our great country.  From now on we will be known as the U.S.S.A (United Socialist States of America).  Bail out the Commercial Real Estate Industry?  Why, what good would that do it we do not have companies to fill these spaces with real demand for their products?  Hey if your a landlord on a commercial property and you bought during the boom then your just a speculator and you deserve to take the loss.  If you had an exisiting building, then maybe it would be wise to have a program to get these owners into loans that reflect the current value so they can try and make ends meet.

News:

Some of the country’s biggest commercial real estate players are asking the government for help, as their $6 trillion industry of hotels, office buildings and shopping malls faces a record amount of debt coming due in the next few years.

Trade association executives said that in the last few weeks they have met with members of President-elect Barack Obama’s transition team, Congressional leaders, and officials at the Treasury Department and Federal Reserve to make their case for assistance.

In the next three years, they pointed out, an estimated $530 billion of commercial mortgages will come due for refinancing — with about $160 billion due next year, according to Foresight Analytics, based in Oakland, Calif. But with the credit markets virtually collapsed, thousands of those properties could go into foreclosure or bankruptcy if owners are unable to get new loans.

“If you can’t get a loan and you owe the bank the money, you have to find the cash to pay the loan back or you default on the property,” said Steven A. Wechsler, who has been lobbying as president and chief executive of the National Association of Real Estate Investment Trusts, a D.C. association with 3,000 members. “Banks’ jobs are to make loans, not own real estate. That’s something we’d like to avoid. It could be a downward spiral that’s driven by a compromised system of credit delivery. Some constructive step by federal policymakers would be wise and appropriate to be able to free up the market.”

Source: Washington Post

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