Realtors reported seeing more movement in the commercial market in the second half of 2010, and the commercial real estate market continues a slow pace toward recovery, said National Association of Realtors® Chief Economist Lawrence Yun during the "Economics Issues and Commercial Business Trends Forum," held last week in Washington, D.C.
Yun said the movement in the commercial market is coming as property prices have decreased, but that banks are still hesitant to lend. "Lending from regional banks has become an important source of funds. The lending from big banks remained sluggish," Yun said. "Investment funds through private equity and real estate investment trusts will play a bigger role as the commercial mortgage-backed securities market struggles to recover."
Property values are still being depressed due to the number of distressed properties on the market, and it could be several years before commercial property prices rise, Yun said.
For the full press release from the National Association of Realtors about the event, click here.
