Morgan Stanley Thinks the Country’s Commercial Real Estate Troubles are Manageable

The Wall Street Journal reports that analysts at investment bank Morgan Stanley believe that the country’s commercial real estate problems are manageable. A team of six of their commercial real estate analysts said recently that the current problems that plague that sector of the nation’s real estate market are “only a moderate headwind for the economy,” and that commercial real estate values reached their lowest point last summer. The team forecasted that the country is heading towards a “multi-staged” and “gradual” recovery and expected real estate values to remain stable throughout 2010.

They based their predictions on some movements in the investment property sector recently, among them CIM Group’s move to pay off debts for their Drake Hotel property in Manhattan, Blackstone Group’s move to buy Wachovia Corp.’s debt as part of a real estate investment trust, and other developments. However, others did not share Morgan Stanley’s optimism. Jamie Dimon, Chief Executive of J.P. Morgan Chase & Co., announced that his company’s losses on commercial real estate loans were expected to get worse in the coming year.

While optimistic, Morgan Stanley tempered their enthusiasm for the commercial real estate market by saying that they expected commercial real estate losses for banks to worsen in 2010. They also told reporters that the challenges of refinancing commercial mortgage-backed securities were “substantial” and issued a warning that distressed commercial assets could continue to decline in value this year.

Are you thinking of investing in Louisville commercial real estate? Call 502.744.9504 today to speak with the Louisville real estate expert at Louisville Properties. With years of experience assisting clients with all the Louisville commercial real estate needs, no one in the area knows more about how to help each client find the perfect property.

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James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

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Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

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