Bloomberg (06/26/08); Mulholland, Susan
JPMorgan Chase & Co. reports that sales of bonds backed by commercial property loans may fall to their lowest level in 12 years as investor demand for the debt continues to wane. Commercial-mortgage backed securities offerings plummeted to $12.2 billion in the first six months of this year from about $137 billion in the corresponding period of 2007, and JPMorgan analysts forecast that sales will dip to $20 billion for the year from a record $237 billion in 2007. Concern that the U.S. economy is contracting continues to weigh on commercial real estate. The National Association of Realtors reports that investment in commercial space plunged 70 percent in the first three months of this year from a year earlier as the credit crunch worsened and slower economic growth curbed demand for office buildings and industrial facilities.
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