From December DAI
Larger Pipeline in 2012: That's a Good Thing
GlobeSt.com is expanding. Update your preferences! to get our newest city digests.
Experts in distress, including the DAI advisory board members providing insights here, agree that 2012 will see more problem properties emerging than this year, but most believe this larger pipeline will mean good things for the industry. The few naysayers, however, posit that the third quarter’s depressed fundamentals, including the European debt crisis, signal too many problems for distress professionals in the next few years.
Alan Pontius, national director of special assets for Encino, CA-based Marcus & Millichap, says these past two years have shown improvement, conflicting with the prediction for 2012. “There’s been a shrinking volume overall in delinquencies for the past seven quarters,” Pontius says. “We’re also seeing workouts outpace the new introduction of distress into the system.” Outstanding distress as of early November was $172.4 billion, and workouts were expected to make a strong dent in this figure, according to Real Capital Analytics.
For the full story, please click here.
Where is the market heading? Get the answers at RealShare Conferences and meet the commercial real estate elite. Check out the schedule of events.
You can now be notified via email if this story is updated by clicking on the "Follow this Story" link. You must be a registered member to take advantage of this "members only" benefit.