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. 

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.