WASHINGTON, DC-Delta Associates will be releasing figures this week that show the current total value of distressed commercial real estate nationwide at $166.8 billion. This number, compiled with data from Real Capital Analytics–which includes properties in distress, foreclosure and lender REO–represents an 11% decrease from the last report in March. At that time, the total value of distressed commercial real estate was $187.4 billion–an increase of 10% or $17.3 billion–since the January report and 33%, or $46.9 billion, from the November 2009 report.

So has the commercial real estate industry reached, finally, the bottom and is now beginning a turnaround? Maybe or maybe not is the disappointing answer–with an emphasis on maybe not. ”There has been a slowdown in distressed assets for a couple of reasons,” Delta Associates head Greg Leisch tells GlobeSt.com. “Lenders are continuing to work with borrowers to extend loans. Also, in many major markets we have seen the decline in valuations finally slow or stop. Some markets have even turned back up.” He doesn’t believe that the decline in distress will continue, though. “I think we will hold in this current range for the next 18 months,” Leisch predicts. 

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