Bankers Show More Optimism about Commercial Real Estate

THE JOURNAL RECORD, April 22, 1993 | Go to article overview

Bankers Show More Optimism about Commercial Real Estate


NEW YORK (AP) _ Commercial real estate is no longer a pariah of the investment community, and that shift in attitude stands to bail out bank earnings in the years ahead, executives and bankers said Wednesday.

Leading New York bankers are now optimistic about their prospects of unloading billions of dollars in real estate loans, foreclosed office parks and shopping malls.

"We're seeing pricing stabilizing, but more importantly, we're seeing increased investor interest," said Joseph DeLuca, head of Chemical Banking Corp.'s real estate division.

Major banks' first quarter earnings reports showed generally positive trends in real estate. Citicorp was able to sell $125 million in troubled real estate during the January-March period. Chemical Bank saw its troubled real estate account fall $127 million to $2.4 billion.

This by no means signals a return to the profligate real estate investment in the 1980s, analysts say. But after a severe drop in property values since the late 1980s, bankers are rejoicing that demand is up and price declines in turn have stopped.

"We are leveling off and things are starting to look up in a few years from now," said Merrie Frankel, a director in corporate finance group at Cushman Wakefield Inc., a real estate concern.

Money to finance new or existing real estate deals dried up in 1990 as property prices fell due to high vacancy rates and overbuilding during the 1980s. The recession made matters worse, sending once-mighty real estate developers such as Olympia York Developments Ltd. and Donald Trump to bankruptcy court.

Banks were left holding billions of dollars in failed loans and foreclosed properties, while there have been relatively few buyers.

A reduction of banks' delinquent loans and foreclosed buildings benefits their balance sheets in several ways. They no longer have to pay the expensive upkeep and taxes for property they've acquired to satisfy bad debts. It also reduces the level of risky assets on balance sheet, meaning banks have to set aside less money in a capital reserve against losses. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Bankers Show More Optimism about Commercial Real Estate
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.