Large Cities May Bounce Back Quicker

According to Prudential, the commercial market may bounce back sooner than expected, particularly in larger cities.  Marc Halle of Purdential Global Real Estate Fund estimates that because the market bottomed faster that the 1990s downturn, it will bounce back quicker.  Because of financing limitations, there is less demand on the market, fostering greater competition between investors with cash.  Halle also noted that many buildings in large cities whose loans are in default are near-full occupancy and are producing income.  Other owners are able to extend their loans, but this is not the case in smaller or mid-tier cities, which will likely endure more contraction. For more details from Reuters, please click here.