by Calculated Risk on 9/10/2007 10:49:00 AM

From the LA Times: Credit woes hit commercial real estate market

The global credit crunch ... is finally reaching the vast commercial real estate investment and development industry.

... bidders who have been borrowing heavily to leverage property acquisitions are falling away as lenders shut out marginal players, [John Cushman, chairman of real estate brokerage Cushman & Wakefield] said. So far, though, the long-robust market has cooled but not collapsed.
...
"There has been a spike in the last 30 days of deals falling out of contract," [Robert White, president of real estate data provider Real Capital Analytics] said. "People planning to close deals last month got hesitant."

The following quotes sound like residential real estate about 18 months ago:

"There aren't a lot of pressured sellers out there. ... " White said. "If they can't get their prices now, they can afford to wait. Probably a lot of assets just won't trade."
...
Another difference from the residential market is that "the delinquencies in commercial mortgages are virtually zero," White said. "We're seeing virtually no delays or defaults."
...
"The frenzy is all gone," [Craig Silvers of Bricks & Mortar Capital] said, "but the commercial market is not in decline."