Commercial property sales fall down globally

On Friday, global sales of investment grade property plummeted 73% to $47 million in the first quarter from a year ago, or just one-sixth of the level two years before, according to real estate research firm Real Capital Analytics.

A total of 1,014 properties, each value more than $10 million, sold worldwide from January through March, the firm said in a monthly report, noting that the fall involved all property types and just about every market.

Making things poorer, the number of properties that require re-financing or needing capital infusions is soaring. New reports of defaulted mortgages and failed commercial property companies exceeded $55 billion in the first quarter, bringing the total known concerned commercial properties to $153 billion.

Additionally, capital which flowed across borders during the increase of 2004 to 2007 has retreated to home countries, as investors with local information look for chances there among the distress.

Distress amid US property is accelerating, according to a separate statement by Trepp that tracks commercial mortgage-backed securities. The securities, backed by commercial loans, are frequently used as a gauge for the rest of the loan market.