Marin Retail Buzz calledRREEF's outlook on retail real estate "too dismal." Marin writes, "Overall, I disagree with RREEF's pessimistic view. The data shows that retail growth didn't accellerate [sic] during the housing boom, and there's no evidence that structural changes will have a negative impact on retail spending. I don't see any significant reasons why the retail sector won't bounce back strongly when the economy recovers."
Reuters posted a piece saying that retail landlords need a reality check. The story makes the argument from the tenants' perspective--quoting Nina Kampler, executive vice president at Hilco Real Estate--that more concessions are in order if retail real estate owners want to avoid more store closings. In another Reuters piece, it looks at how up-and-coming rating agencies like Realpoint are seeking to step in as alternates to S&P. Realpoint tracks CMBS.
The Big Picture examines how interest only mortgages signed during the boom are beginning to hurt commercial real estate. Barry Ritholz writes, "But these 2 and 3 year commercial I/O lending packages at the tail end of a giant RE book are inherently problematic. Almost by definition, when a borrower users I/O financing, it suggests they cannot afford to make the actual purchase, and were unable to arrange other forms of financing." The post was a response to a Bloomberg story that looked at mounting losses from I/O loans. The story looks at how investors in bonds that packaged $62 billion of debt for U.S. offices, hotels and shopping malls are bracing for more loan defaults through 2010 as landlords' monthly payments jump by 20 percent or more.