Feb
12

The Great Property Writedown, Part I: Damned if You Do, Damned if You Don’t

By
Disequilibrium and Confusion Reign on What Is the True Value of Properties

– CoStar

The great commercial property value writedowns of the ‘2007-?? Recession’ have begun and early indications are that the damage to values could be substantial and, in some cases, ruinous. The re-valuation of properties already has one major U.S. office property owner on the ropes and its survival in doubt.

Numerous triggers are forcing the re-valuation of assets, including the burn off of interest-only periods on loans that became increasingly popular in 2005-’06, other loan maturities, rising cap rates, rising vacancies due to falling space demand and falling loan-to-value ratios.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:

http://www.costar.com/News/Article.aspx?id=F8F035CA3F5DD43BB84D9D4BBDD76644&ref=100&iid=118&cid=5D9F1AA40374FA4B74FCDDE49D4C0290
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