Commence the Twin Cities commercial real estate meltdown, but let’s hope not.
No secret that this area is the next to and by the sounds of it… it’s just getting started. Distressed property experts in commercial real estate are popping up just like all the REO agents in Minneapolis/St. Paul sprung up in the past few. Big firms adding distressed property experts to handle the already here and soon to be inventory.
There is a lighter side according to the Star Trib:
Area real estate experts say they don’t believe the Twin Cities market will experience the surge in commercial property foreclosures already seen in some parts of the country that had higher levels of speculative development. That includes California, Texas and Florida, which now account for about 30 percent of all CMBS delinquencies, according to Realpoint
From the USA today archives on the commercial real estate meltdown:
But many banks no longer hold the loans they made. Over the past decade, banks have increasingly bundled mortgages and sold them to investors. Pension funds, insurance companies and hedge funds bought the seemingly safe securities and are now bracing for losses that could ripple through the financial system.
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I’ve been investing on REO properties in Minneapolis MN, – It’s pretty bad for property owner.
> When businesses turn down, many people will lose their jobs.
> Thus, Towns lose tax revenue.