| IN THE October
28, 2009 ISSUE |
Global Markets Begin to Recover as U.S. Lags
Behind
Governments have taken extraordinary measures to jolt the
global economy back to life and their efforts are working, according to
a new report by Chicago-based brokerage Jones Lang LaSalle. The worst of
the worldwide commercial property meltdown is over, the report
concludes, and momentum is on the side of recovery.
Through September, global corporate debt and equity issuance reached
$4.2 trillion, an increase of 35% over the same period in 2008, a pace
that could set an all-time annual issuance record, according to the
market study.
In another promising sign, across Europe 30% of major markets reported
an increase in leasing levels and improved stability of office rents for
the third quarter of 2009, compared with the second
quarter.
Capmark Financial Group Files for Chapter 11 Bankruptcy
Protection
One of the nation’s largest lenders, Horsham, Pa.-based
Capmark Financial Group, has filed for Chapter 11 bankruptcy protection,
saying it intends to restructure to reduce its corporate debt.
In July, Capmark ranked sixth on National Real Estate Investor’s list
of the country’s top 25 direct lenders with $7.8 billion directly
financed in 2008, and another $2.5 billion in arranged
financing.
Troubled CMBS Loans Skyrocket as Special Servicers Wrestle with
Backlog
Since January, the volume of troubled commercial
mortgage-backed securities (CMBS) loans sent to special servicers for
resolution has risen a startling 300%, and more losses are expected,
according to a new report by New York-based Fitch Ratings.
Because of market conditions, defaulted loans are being resolved more
slowly than in the past, and less traditional loan workouts are becoming
more common. By the end of the third quarter of 2009, only 10% of loans
dispatched to special servicing following delinquencies or defaults had
been returned to the loans’ master servicers and categorized as
current.
Seaports Ready to Catch Wave of Growth
Industrial warehouse properties near many U.S. seaports
are suffering higher vacancy rates and financial setbacks as the flow of
cargo to U.S. ports has dropped by roughly 15% from last year. But
better days are in store for warehouse investors as the ports fight back
with ambitious improvement projects, spending billions of dollars to
gear up for a projected jump in traffic over the next decade.
Eastern U.S. seaports are expected to benefit most from the $5.25
billion widening of the Panama Canal to allow bigger cargo ships and
faster passage through the canal's locks. From Charleston, S.C. and
Savannah, Ga. to Jacksonville, Fla. and up to New Jersey, port
authorities have been dredging their harbors to accommodate larger
vessels, and expanding their facilities.
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