Real estate 'distress' hits Austin

From KXAN, December 26, 2008...

The number of empty buildings in Austin is continuing to grow, and current property owners are becoming more distressed, according to two recent reports. Austin has nearly $76 million worth of distressed commercial properties and nearly $1.6 billion in potentially troubled properties, according to a recent report from Real Capital Analytics, a New York based real-estate research firm.

The report defines "distressed" as a bankruptcy of a general partner, and leasing and sales projections that fail to come to fruition, among other things. Austin was 17th out of 39 metropolitan markets, according to the report in the number of distressed properties. Still, the numbers need perspective, said Kevin Burns, CEO of Urbanspace Realtors.

"To have $76 million in distressed properties really isn't that much," said Burns. "We're holding up much better than everybody else."

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$76M of Austin property is “distressed”

From Austin Business Journal, December 24, 2008...

Austin has approximately $76 million of distressed properties and nearly $1.6 billion of potentially troubled properties, according to a Dec. 17 report from Real Capital Analytics.

Bankruptcy of a general partner, impending maturity for mortgages or failed leasing and sales goals can all lead to a property falling into the financially “distressed” category, the report said.

The report, which studied 39 metropolitan markets, ranked Austin 17th based on the financial amount of distressed properties and 20th by the number of troubled properties.

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