Commercial Real Estate Showing Signs of Life

Thursday, 28 June 2012, Scott Johnson

As the Federal Reserve last week maintained policy positions designed to keep interest rates low, commercial real estate professionals in Clark County see the ongoing monetary policy as constructive, but lacking broad economic power to truly improve the current real estate climate. Plaza 192 in Vancouver, WA

Under the extended Operation Twist, the Fed will exchange $267 billion in short- to medium-term bonds for longer dated securities, with the intention of driving long-term interest rates lower.

At Coldwell Banker Commercial in Vancouver, agent Jim West said that the bond purchases will keep pressure on interest rates, which “allows the banks to rebuild their capital bases.”

“After they have time to write off some of these bad real estate deals, eventually they get back to where their ratios are correct, and they can loan again,” he said.

West thinks monetary policy has been effective at helping stabilize the bigger banks, and sees the commercial market making steady progress.

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