Monday, October 26, 2009

Empty offices at 5 year high

Capmark Financial files for bankruptcy

Capmark Financial, one of America's biggest commercial property lenders, filed for Chapter 11 bankruptcy protection on Sunday night after being hit by souring loans. Capmark was the commercial real estate loan business of GMAC, General Motors' finance operation, before being bought in 2006 by a consortium led by KKR, Goldman Sachs Capital Partners and Five Mile Capital Partners.

Posted by mken @ 02:42 PM (940 views)
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4 thoughts on “Empty offices at 5 year high

  • “Many banks have so far held off writing down their commercial property investments in the hope that the economy will make a quick recovery, enabling borrowers to increase rents and restructure the loans.”

    I think that says it all really.

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  • This article is about events in the USA. Meanwhile here in Blighty, house prices continue to rise and even commercial property is back on an upward trend. What’s going on?!

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  • @ Drewster,

    Unless you live in a very upmarket part of Britain a trip to your local mall, industrial estate or shopping precinct should tell you that a number of medium size businesses are simply closing down, or have closed over the last 3 months. My High St (Esssex, near M25) has 7 or 8 charity shops who are leasing for peppercorn rents.

    I think commercial property is going to be the bank’s next big headache.

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  • Alan,

    I’m not really a regular high street shopper, I suppose I’ll see this devastation on December 24th when I do my Christmas shopping.

    A quick google news search for commercial property stories in the UK reveals a trail of upbeat news. While I suspect retail may be in the doldrums for a while (weak pound = expensive imported goods), office space in London is apparently recovering.

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