CNBC – Quick turnaround expected for commercial real estate
Following major commercial real estate troubles, including a recent
loan default at the St. Regis in Dana Point, California, and 25
percent decreases in revenue per room for Sunstone Group, the alarms
are sounding for commercial real estate. Companies are finding
themselves mired in debt, unable to refinance, Marcus & Millichap CEO
Harvey Green told CNBC. Not all companies are experiencing hardships,
though. CB Richard Ellis recently sold $100 million in stocks to hedge
fund millionaire John Paulson at ten dollars per share. Jay Leupp of
Grubb & Ellis also expressed some optimism for commercial real estate,
especially in the public sector. Public real estate investment trusts
have risen 18 billion dollars since November, Leupp said. The first
turnaround will occur in healthcare and specialty sectors that have
been more recession-resilient with lodging, industrial, retail and
finally office space following, he said. For more information please click on the link provided: http://www.cnbc.com/id/15840232?video=1152929336&play=1
Duration : 0:3:43
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