U.S. commercial property prices may fall within a year as building owners attempt to refinance US$1T in mortgages, real estate executive says
May 6, 2011
– The head of real estate for Apollo Global Management LLC said U.S. commercial property prices might fall within a year, citing major mortgage refinancing, Bloomberg reported May 3.
Joseph Azrack of Apollo predicted the decline as building owners attempt to refinance US$1 trillion in mortgage.
Azrack said that rents in some U.S. cities don’t justify the rising prices being paid and may force owners to give up properties when their loans mature. He added that the market is due to correct itself in the next 12 months as we near the end of the first stage of the financial crisis’s aftermath.
The primary source of this article is Bloomberg, New York, New York, on May 3, 2011.