Its no secret that Florida is one of four states that has borne the brunt of the residential real estate bust. Now as we teeter on the edge of a major commercial slide what role will Florida fill?
While we don’t have the data on the entire Floridian commercial real estate universe we do know what trouble lies with Florida based banks and since local and regional banks tend to do the bulk of the commercial lending our data provides a good barometer of what’s to come. These numbers are accurate as of the end of Q2 reporting Q3 data should be available any day.
Florida Banks Commercial REO
Florida based banks reported commercial REO balances at only $216,821,000. This number is spread over 120 banks. Do keep in mind though that this does not include bank owned construction projects or multifamily REO. Also the trend has been an increase in every one of the last four quarters.These numbers are only for banks headquartered in Florida. this number has grown from only $81,996,000 just four quarters ago. That’s a 164% increase.
Florida Banks Non Performing Commercial Loans
FL banks saw a 112% increase in non-performing commercial real estate loans over 4 quarters
Non performing loans are the pre-cursor to REO. If our bank data is any indication of what’s to come (and it is) then commercial real estate investors are about to see an avalanche over the coming quarters. At last reporting Florida based banks had $1,235,618,000 in distressed commercial loans (non performing) at 217 banks. It is quite clear that the trouble is growing and it is not being dealt with very quickly.
Are you an investor, broker, banker, or attorney dealing in distressed property or working with banks? We want to hear from you. Weigh in on the opportunities you’re seeing now and what you see in the future in the comments below.
About Brecht Palombo