November 2009

An index by Moody's found that commercial real-estate prices have, on average, returned to levels seen seven years ago. The Moody's/REAL Commercial Property Price Index fell 3.9% in September to 109.61 from 114.06 in August. Based on the index, prices were 37% lower than in September 2008 and 42.9% below the October 2007 peak. The index is based on repeat sales of the same properties across the U.S. at different times.

* U.S. commercial property to hit bottom 2010 - Maximus
* Market to recover over 16 pct after 2010

* Rebound to start in apartment sector

By Al Yoon

NEW YORK, Nov 23 (Reuters) - U.S. commercial properties getting clobbered today are likely to hit bottom in 2010 then claw back a third or more of their lost valuations over three years, according to a report by Maximus Advisors.

By Ryan Frank

Developer John Beardsley, who's owned downtown Portland real estate since the 1960s, has put his company into Chapter 11 bankruptcy.

Beardsley's company, Fountain Village Development, owns enough historic properties to fill a skyscraper. But he sent the company into Chapter 11 to prevent the loss of one small storefront to foreclosure.

The old Jazz de Opus club at Northwest Second Avenue and Couch Street was headed for an auction Monday morning on the steps of the Multnomah County Courthouse. Beardsley halted the sale with the bankruptcy filing Friday.

BY RICHARD NEWMAN AND ANDREW TANGEL

Many community banks face a dilemma. Their main reason for being is to make commercial real estate loans, and a fledgling economic recovery depends, in part, on them making more of them. But increasing loan defaults in a distressed commercial real estate market is making it a riskier business.