Wednesday, February 08 2006 @ 10:04 am UTC
Contributed by: jron
Another strong year is brewing for the nation's commercial real-estate, while the housing markets are in slow trend, said by
an industry economist,Doug Duncan, chief economist of Mortgage Bankers Association of America said "We're looking for a pretty good year, at least as good as last year and possibly better,"
He adds "There's no evidence of capital drying up," Saying that they are facing an all-time high on foreign investment. "Money globally looks for the safest place to get the best return, and that happens to be the United States," He adds.
Duncan sees a slight slowing over the course of the progressing year but he says they are in still-healthy levels by the end of the year. That will eventually be a comfort to lenders as they are considering new loans in hundreds of millions of dollars.
Last year in all commercial sectors, lending increased, with the office development leading the way, not far behind are apartments, retail and hotels, they have all good year last year.
"said the recent extension of federally backed terrorism insurance gave commercial real estate a boost." says Kieran P. Quinn, vice chairman of the trade association and chief executive officer of Column Financial, a subsidiary of Credit Suisse.
Quinn adds that "mortgage bankers would like to see the federal terrorism-insurance program made permanent. The group also would like to see coverage added for nuclear and biological attacks, which are now excluded."
Recently the Orlando conference has drawn power players throughout the commercial real estate business, as people like, lenders, consultants and service providers are all present. J.P. Morgan, Merrill Lynch Commercial Real Estate, Prudential Financial, Morgan Stanley, CIBC World Markets and Deutsche Bank. are among the companies in attendance.