According to commercial real estate brokerage Grubb&Ellis, the commercial real estate market will not start coming back until 2011. They are forecasting that the banks are holding back on foreclosures of commercial property and may spread them over a three or four year period Read Grubb&Ellis report for the 2010 Forecast today for Northern California and the Central Valley’s office, commercial and retail environment. The common prognosis is: the decline continues, but not as fast as last year. Look for a recovery starting in early 2011. Until then rents keep falling.
” While we expect real estate sales to pick up during the year, banks have delayed selling their REO properties in order to protect their capital reserves. As a result, distressed assets will likely come to market over the next two, three or even four years. CMBS will provide opportunities for investors to acquire distressed debt in 2010, but the structure of the original agreements often makes the process more arduous than buying a property or a whole loan from a bank.”