Commercial Market Slowly Improving

According to Reuters, the commercial real estate market may have avoided the crash that was expected of it. Credit still remains tight, but an influx of foreclosed commercial properties and bankruptcies is unlikely.  Because banks have been able to extend, restructure and modify loans, the commercial market has been given a chance to breathe and values have slightly risen.  If special servicers and lenders continue to handle distressed loans as such, prices are likely to avoid a rock-bottom. This news is supported by data from the Moody's/REAL All Property Type Aggregate Index and Reed Construction Data.  According to the Moody's/REAL All Property Type Aggregate Index, commercial property values rose for the first time in two months during the month of April, though values are still far from their October 2007 high.  Reed Construction Data also reported an increase in building permits in April, particularly in the non-residential sector. For more on the Moody's/REAL All Property Type Aggregate Index from Reuters, please click here.  The Reed Construction Data article on building permits can be found here. More from Reuters' article on the commercial real estate market can be found here.