State Of Denial

Loopnet commercial real estate listing website conducted a poll of 1500 real estate commercial brokers and investors in the Bay Area asking when the commercial market will recover.  Poll results show 46% say not until 2010.

The number one reason cited by poll respondents for commercial property not selling is lack of available mortgage financing, the second reason,  seller high expectations of value.

There is a lack of commercial mortgage financing.  Commercial agents and investors are in a state of denial.  There will be no significant improvement in the availability of commercial mortgage financing by 2010, or even 2012.  It is going to take 10 years for banks and insurance companies to recover from existing capital losses, unless the PPIP works.  Further, foreign lenders are out of the market.