A wave of fresh capital into the commercial real estate market is reviving delayed projects and helping new apartments, offices, and stores get off the ground. Pockets of demand for new commercial space are emerging even as many U.S. banks continue juggling billions of dollars in problem loans.
J.P. Morgan Chase & Co., for instance, financed as much construction lending in the first six weeks of 2011 as it did in all of last year. Todd Maclin, head of J.P. Morgan's commercial bank, notes, In the third quarter and fourth quarter of last year, it started as a trickle, and now you're starting to see much more activity.
While it will take years to replace more than 2 million construction jobs lost since the real estate bubble popped, commercial projects could help buffer the U.S. economy if public-sector construction dives as a result of impending government budget cuts.
Source: “Lending Revives Stalled Projects,” The Wall Street Journal, Anton Troianovski (02/23/11)
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