Eagle Quest Properties

While small businesses are still struggling in this weak economy, many are catching a break when it comes to negotiating with landlords.

The weakness in the commercial real estate market comes in part from high vacancy rates in many parts of the country. And many landlords are increasingly willing to cut a deal with renters so they can keep their buildings occupied.

“The balance of power in negotiating a lease or renegotiating a lease in some areas is now with the tenant,” said Janet Portman, an attorney and co-author of “Negotiate The Best Lease for Your Business.” “If the market is awash with space, then you can assume the competition will be tight for rents and you’re going to have some real clout.”

via Weak rental market gives small business owners leverage in talks with landlords.

As the commercial real estate market continues its downward decline, a new Fitch Ratings report indicates that large hotels lead loans of concern for U.S. CMBS with eight newly defaulted loans greater than $100 million entering special servicing, according to Fitch’s ‘What’s in Special Servicing’ U.S. CMBS report.

Recent defaults include two hotel portfolios: Red Roof Inn and Extended Stay. Since Fitch’s last update in April, $17.4 billion in Fitch-rated loans have entered special servicing, which does not include the Extended Stay Portfolio, which on its own totals more than $4 billion.

via Fitch Ratings: Large Hotels Defaulting on Loans at High Rate.

Delinquencies on commercial mortgage backed securities soared $10 billion in June, hitting a 12-month high of almost $29 billion, according to Realpoint Research.

California led the nation with the highest amount of delinquent loans, closely followed by Texas and Florida.

Late loans across the country are up an “astounding” 585 percent from a year ago when just $4 billion were delinquent, reported the Horsham, Pa.-based research firm. The low point for delinquency was March 2007 when $2 billion was delinquent.

via Commercial mortgage delinquency up 585% – New Mexico Business Weekly:.

U.S. mortgage fraud reports jumped 36 percent last year as desperate homeowners and industry professionals tried to maintain their standard of living from the boom years, the FBI said on Tuesday.

Suspicious activity reports rose to 63,713 in fiscal year 2008, which ended last September, from 46,717 the year before. California and Florida, centers of the housing bust, had the highest numbers of suspicious reports as foreclosures jumped, the stock market dropped and credit dried up.

“These combined factors uncovered and fueled a rampant mortgage fraud climate fraught with opportunistic participants desperate to maintain or increase their current standard of living,” the Federal Bureau of Investigation said in its report.

via U.S. mortgage fraud ‘rampant’ and growing-FBI | U.S. | Reuters.

A few interesting stories. The first story (more than half off from the peak price) the buyer bought the loan, and then the current owner transferred the deed in lieu of foreclosure. The second story is a photo essay of the real estate bust, and third story is about the City Center project in Las Vegas.

via Calculated Risk: CRE: Half Off Sale in San Francisco and More.