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No recovery for U.S. property markets until 2017

Ilaina Jonas Reuters
Richard Parkus, head of Commercial Mortgage-backed Securities and Asset-Backed Securities Synthetics Research for Deutsche Bank Securities, speaks at the Reuters Global Real Estate Summit in New York, June 22, 2009. REUTERS/Brendan McDermid

Richard Parkus, head of Commercial Mortgage-backed Securities and Asset-Backed Securities Synthetics Research for Deutsche Bank Securities, speaks at the Reuters Global Real Estate Summit in New York, June 22, 2009. REUTERS/Brendan McDermid


NEW YORK (Reuters) - The U.S. urban commercial real estate markets probably will not recover until 2017, the head analyst of commercial mortgages for Deutsche Bank Securities (DBKGn.DE: Quote, Profile, Research, Stock Buzz) said on Monday.



"The froth is still working itself out," Richard Parkus, Deutsche Bank head of Commercial Mortgage-backed Securities and Asset-Backed Securities Synthetics Research said at the Reuters Global Real Estate Summit in New York. "We are currently in something which is comparable to what we saw in the 1990s and potentially worse."

U.S. commercial real estate values could fall by more than 50 percent from the peak in 2007, he said.

Although asking rents are down about 28 percent in New York, factoring in free rent and other perks by landlords, rents are down about 50 percent, Parkus said.


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