by Calculated Risk on 2/24/2008 04:41:00 PM

From Financial Week: Commercial property values in for steep drop, says loan liquidator

In what may well be a sign of things to come, Mission Capital Advisors said it is accepting bids for a $131.2 million portfolio of non-performing loans secured by commercial mortgages foreclosed on by a Midwestern bank.

... [David Tobin, a principal at Mission Capital] predicted commercial property values are heading for a steep fall due to the rising tide of troubled portfolio sales by banks, as they move to get non-performing assets off their books.

... Eventually, Mr. Tobin believes the declines in the commercial real estate market could mimic those being registered in the residential market now.

The CRE slowdown is here, but I don't think the CRE bust will be as bad as the residential bust.