Apartment Building Advisors Blog U.S. commercial real estate could be next blow to economy August 3rd, 2009 9:11 PM U.S. commercial real estate could be next blow to economy by Matthew Rusling   Commercial real estate prices slid 7.6 percent in May, according to the latest available statistics from Moody's Investors Service, and have dropped 35 percent from their peak in October 2007   At a recent Congressional Oversight Panel hearing, Richard Parkus, an analyst at Deutsche Bank, said two-thirds of commercial real estate loans -- which amounts to hundreds of billions of dollars -- could be in default in the next few years. Valued at about 6.7 trillion dollars, commercial real estate comprises 13 percent of the United State's gross domestic product and further price declines could impact the larger economy, experts said. Maloney said the Public Private Investment Program -- an initiative providing liquidity for so-called "toxic assets" on the books of financial institutions -- could also help correct the problem.     But she added that the program expires at year's end -- which may limit its impact -- and that uncertainty over its future has kept many investors on the sidelines. Posted by Apartment Building Advisors on August 3rd, 2009 9:11 PMPost a Comment (0) * Name: * Email Address: URL: Comment: Type the characters you see in this picture, click "Submit" when finished.   This helps us prevent automated programs from posting comments and sending spam. * Name: * Email Address: Address: City: State: Zip:   This helps us prevent automated programs from creating bogus contacts and adding them to your contacts database.

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