February 4, 2012

Defaults on commercial real estate accelerate

Defaults on commercial real estate accelerate

New construction projects have come to a virtual standstill. That means reduced tax revenue for local governments and fewer construction jobs, said Jeffrey DeBoer, chief executive of the Real Estate Roundtable, an industry group.Owners of shopping malls, hotels and offices are defaulting on loans at an alarming rate, and the commercial real estate market is not expected to hit bottom for three more years.