Developers must meet debts by 2011
Share Now on:
TEXT OF STORY
Scott Jagow:: Up next in the handout line could be developers. The companies that own shopping centers, hotels and commercial buildings. Marketplace’s Nancy Marshall Genzer has more on that.
Nancy Marshall Genzer: Property developers are warning that a tsunami of mortgage debt is scheduled for refinancing between now and 2011. Foresight Analytics reports that $530 billion worth of commercial mortgages will come due over the next three years.
Developers say they’ll have a hard time coming up with the money because of the credit crunch. Foresight says commercial mortgage delinquencies are already almost a percent higher than they were at the end of last year.
The Wall Street Journal reports developers want to be included in a $200 billion federal loan program that was created to backstop loans for credit cards and cars, and student loans. The Journal says a dozen real estate trade groups sent a letter to Treasury Secretary Henry Paulson. They say they’re already short on cash because rents are falling and vacancies are on the rise.
In Washington, I’m Nancy Marshall Genzer for Marketplace.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.