It is no secret that much of the commercial real estate market is overleveraged.
The European commercial real estate market is facing one of its most difficult periods for some time.
Global commercial real estate asset values are undergoing a correction in that will create risks and opportunities for investors everywhere, as the global economy and financial markets adapt to a lowerleverage world.
The bottom line for real estate equities is that with the debt markets in flux and transaction activity stalled, 2009 is likely to be more about positioning for the economic rebound rather than aggressively acquiring assets.
Deleveraging will have a profound impact on commercial real estate. Less lending by banks will serve to slow economic growth.