I've never been in the camp of those predicting that commercial real estate would experience the same type of ugly bubble seen in the residential sector. Don't get me wrong, CRE has been nicked pretty good, especially "commercial" loans that funded tract development and home building. (Also, the New York 'Stuy-town' disaster will be studied in B-Schools for years.)
But unlike in the residential business, the nation did not see commercial "subprime" loans where the borrower obtained a mortgage under the proviso he was still breathing. (There was some of this, but not a massive amount.)
Luckily, commercial lenders did not totally throw underwriting standards out the window like their compatriots on the residential side of the aisle. Meanwhile, a new report from the National Association of Realtors says 2011 may be a decent year for CRE markets. See the National Mortgage News website later today for more information….
