Like the office vacancy news we shared earlier this week, another article has mentioned that commercial real estate b has entered recovery mode,b this time from The Wall Street Journal. Rather than lower office vacancy, more lending is cited as a catalyst of recovery for the national commercial market. With this new lending, new and halted construction projects are able to progress.
Although some commercial real estate loans resulted in bank failures during the economic downturn, a portion of the bigger national banks are slowly beginning to offer construction loans again, WSJ reports. Office buildings, shopping centers and apartment complexes are among the commercial buildings people could start seeing slowly sprouting up again. Note the word slowly. The billings index from the American Institute of Architects rose in the last two months of 2010, but is expected to have been stable in January—a key sign that the recovery isnb t moving quickly.
You can learn more about increased lending sparking CRE construction from WSJ.
Image: uflib.ufl.edu
Tags: commercial construction, commercial real estate, lending, Morris Southeast Group, office property, recovery, vacancy
