(Source: The Chronicle Herald)
TORONTO — Commercial real estate is in for “a very bad year” characterized by high-profile bankruptcies among commercial property owners, executives say.
David Henry, president of U.S.-based Kimco Realty Corp., said this week the coming year will be “a lot worse” for commercial real estate as property owners find themselves unable to pay off or refinance their debt.
“We have a massive wave of debt maturities coming, at least in the U.S.,” Henry said during a panel discussion at CIBC’s annual conference on North American real estate equities.
“Most of this is securitized, and there will be a massive amount of workouts, there will be some extensions, but there will also be some very high-profile bankruptcies, very high-profile forced sales.”
Henry said the foreclosure sale of the John Hancock Tower, an iconic skyscraper in Boston, is a sign of things to come.
Read Kristine Owram’s full article “‘Very bad year’ in real estate predicted” in The Chronicle Herald (April 11 2009).