U.S. commercial real estate transactions rose in the third quarter for the first time since around 2007 but is still way down from a year earlier, said the National Association of Realtors. This organizatio, which hosted the 2009 REALTORS® Conference & Expo in San Diego which ended last Monday, said in its report that Commercial Leading Indicator for brokerage activity index rose 0.9 percent from the prior quarter’s fifteen-year low to 102.4, the first rise since the second quarter of 2007. Still, the index is 11.1 percent below the 115.3 reading in the third quarter of last year.

But NAR’s chief economist, Lawrence Yun, stressed that the lack of financing for commercial real estate transactions is slowing down our economic recovery. Yun addressed the government to take action to relieve some of the lending pressure as banks become troubled with the increase of toxic loan portfolios over-leveraged by commercial properties that are losing value now.  Banks then become shy about lending money which create a challenging environment for commercial transactions.

2 Responses to “Commercial Real Estate Transactions Rose in the Third Quarter”

1. Mike Gonzaga says:

   November 19, 2009 at 4:22 pm

   The government is taking steps to help resolve the problem as it recently relaxed banking guidelines on how to deal with troubled loans. Will this cure the root of the problem or just a temporary bandage?
2. Bert Scheider says:

   November 19, 2009 at 6:25 pm

   Miami foreclosures registered so far is 54,462, and is on track to go higher than 2008 level of 56,656. These are buying opportunities for investors that will not be around forever.

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