CORFAC News

ROSEVILLE, CA —May 5, 2010 –A tsunami is imminent for the commercial real estate (CRE) market, one not comprised of water but of debt, according to Tony Wood, commercial real estate expert and author of the new book “The Commercial Real Estate Tsunami.” Wood is also a Senior Vice President with TRI Commercial/CORFAC International based in Roseville, CA.

An unprecedented wave of commercial debt loans—about $1.4 trillion (which equates to approximately 50% if total U.S. CRE debt) —will reach the end of their terms between 2010 through 2014. Nearly half are at present “under water,” that is, the borrower owes more than the underlying property is currently worth. About two-thirds of the estimated $700 billion in securitized (CMBS) loans will not qualify for refinancing. And banks are not adequately protecting themselves against potential losses, setting aside only 38 cents of every dollar for bad loans. As a result of the commercial real estate foreclosures that lie ahead, more than 700 banks could possibly fail. Combined with the weakest economic and financial conditions in generations, this tsunami of debt threatens to derail a nascent economic recovery and hit the financial markets with a second round of losses.In The Commercial Real Estate Tsunami (Wiley; May 2010; $49.95; 978-0470-62682-5; Hardcover), Wood addresses the trillion dollar wave of commercial loan maturities coming due in the next few years, including the causes, which are rooted in the same market exuberance that led to the residential housing market collapse, lessons learned from previous cycles, how to manage increasing vacancies and falling rental rates, and restructuring businesses to meet the new market’s challenges. The book is available wherever books are sold. It is the only book on the market of its kind. To see pages of the book, please go to Amazon.com and in the search bar type “real estate tsunami” and Tony’s book will pop up; click on “Look Inside.”According to Wood, “While much of the problem is a reflection of the collapsing residential and commercial real estate markets due to the overall economic conditions, the lack of available financing and the willingness of commercial lenders to lend is a major issue as well. Even clients with impeccable credit standing and significant net worth have been denied over the past year. The banks’ refusal to cooperate with creditworthy borrowers, existing customers and depositors have created loan defaults that in some cases could have been easily resolved.”In addition to insight provided by Wood, this book contains research, interviews, and contributions from such experts in the market as Dr. Sam Chandan, Global Chief Economist and Executive Vice President of Real Capital Analytics; Charles McClure, 2009 President of CCMI (Certified Commercial Investment Member) Institute; Matthew Anderson of real estate market consultancy Foresight Analytics; Eric Von Berg of Newmark Realty Capital; Maura O’Connor of Seyfarth Shaw LLP; Cynthia Shelton of CRI firm Colliers Arnold and the 2009 President of the Florida Association of Realtors, Tom Loeswick of business consultancy Shirlaws International; and Donna Wood of FamilyBroke.com and TRI Commercial/CORFAC International Brokers.Owen Rouse Jr., 2010 CORFAC International President, said: “Tony’s book goes beyond a traditional analytical framework by placing elements of the commercial real estate finance crisis under a microscope and pairs market observations with actionable strategies to operate in challenging times. He covers the spectrum from underlying fundamentals through loan triage for lenders to strategies for borrowers to best-practices for brokers….all delivered with relevant support from industry experts. It’s a sturdy guide for difficult times.”The Commercial Real Estate Tsunami  not only sends out a warning to the CRE industry but offers concrete solutions that will help market participants—investors, developers, lenders, and brokers weather and benefit from the coming torrent.ABOUT THE AUTHORTony Wood is an award winning veteran of the commercial real estate industry. With over 30 years experience and a consistent track record as a top producer he has successfully worked with all types of commercial property with a wide range of client profiles. He has been retained as a consultant to law and accounting firms and also represents lending institutions in the evaluation and disposition of their Special Assets and Commercial REOs. Tony is active leader in the commercial real estate industry and is an invited guest speaker and contributor to numerous media outlets www.tonywoodconsulting.com.THE COMMERCIAL REAL ESTATE TSUNAMI By Tony WoodWiley; May 2010$49.95; 978-0470-62682-5; Hardcover

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About CORFAC InternationalCORFAC International is one of the largest commercial real estate services organizations in the world and celebrates its 21st year in 2010. U.S.-based CORFAC is comprised of privately held entrepreneurial firms serving more than 150 markets in the Americas and internationally through alliances with UK-based King Sturge, BDIin Mexico,Rios Commercialin Puerto Rico and Panama-based Latin American Corporate Property Services. In recent years, CORFAC firms completed over 9,000 commercial real estate transactions annually, encompassing more than 300 million square feet and valued each year in excess of $30 billion.  For more information on CORFAC contact 954-923-6160, info@corfac.com or visit www.corfac.com.