Below, release from Biggert.....
House Panel to Hold Chicago Field Hearing on Commercial Real Estate
- U.S. Representative Judy Biggert (R-IL-13th), Ranking Member, House Financial Services Subcommittee on Oversight and Investigations
- U.S. Representative Dennis Moore (D-KS-3rd), Chairman, House Financial Services Subcommittee on Oversight and Investigations
- Members of the House Financial Services Committee
- Witnesses from government and industry, as well as Chicago market participants involved in commercial real estate
At the request of Ranking Member Biggert, the House Financial Services Oversight and Investigations (O&I) Subcommittee will hold a field hearing entitled Commercial Real Estate: A Chicago Perspective on Current Market Challenges and Possible Responses.
1 pm (CDT) on Monday, May 17, 2010
Room 2525, Dirksen Federal Courthouse, 219 S. Dearborn Street, Chicago, Illinois
Even as other economic indicators begin to stabilize, delinquency rates on commercial real estate (CRE) mortgages and construction loans continue to rise. In Chicago, delinquency rates on commercial mortgages rose to 6.7% during the first quarter of 2010, compared to 5.6% nationally, ranking it 12th among large U.S. metropolitan areas, according to Foresight Analytics LLC. Rising delinquencies are tied to falling property values, weak employment, reduced credit, and depressed property incomes. As a result, economic recovery has been slower to take hold near concentrations of factory, warehouse, office, retail, and multi-family property. The O&I Subcommittee will hold a hearing to examine recent turmoil in the CRE market and explore solutions designed to speed its recovery. Topics will include lending, Commercial Mortgage-Backed Securities, illiquidity, and barriers to commercial development.
"Chicago is a perfect example of where the commercial real estate market is deeply intertwined with broader economic development and employment," said Biggert, "Stabilizing commercial real estate is a critical step in shoring up the rest of the housing sector, filling vacant properties, and revitalizing communities. This hearing will shed light on the difficult challenges we face in Chicago, and explore solutions designed to restore the flow of credit and make commercial properties productive again."
"I thank Ranking Member Biggert for inviting the subcommittee to Chicago to examine this important and timely issue," said Chairman Moore. "To fully evaluate the state of the commercial real estate market, it is imperative that we hear directly from businesses, investors, lending institutions and regulators who have day-to-day experience with the commercial real estate market. Their input is vital to finding solutions to these challenges."