Real Estate News

Reserve Changes & the Impact on Commercial Real Estate

May 13, 2011

The Federal Reserve is saying that they will not be renewing a $600 billion buying program past June of this year. And that means that there are many businesses and investors out there that fear that ending this program will drive up the cost of capital. This may have an affect on many markets, but commercial real estate in particular.

Many commercial real estate loans are limited to a 5 year maturity, and thus they come up for renewal or payoff much shorter than that of an average home owner. So higher commercial loan costs could mean more foreclosures; more bad news…

You can read more about it here:

http://blogs.forbes.com/greatspeculations/2011/05/13/commercial-real-estates-sink-or-swim-moment-as-qe-2-heads-to-port/

You Might Also Like

No Comments

Leave a Reply