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Commercial real estate market has bitter pill to swallow

The Daily Transcript-- To say that commercial real estate and capital markets are in disarray is understating the obvious.

Today's commercial real estate markets are hurting badly, largely because of banking and capital market problems compounded by the national recession, with its historically high unemployment rates. Banks are under tremendous regulatory pressure to raise equity capital, increase loan loss reserves and tighten underwriting criteria. Only politicians and borrowers are pushing banks toward making more loans, not regulators or banks' boards of directors. The overhang of CMBS due to be refinanced in 2010-'13 is huge, with few if any clearly identified sources of capital prepared to offset that calamity-in-waiting. (Full Story)