Commercial Real Estate Under Pressure

New York, NY, Oct. 6, 2009--New York Federal Reserve Bank President William Dudley said the commercial real estate sector is under particular pressure because the fundamentals of the sector have deteriorated sharply.

Speaking at the Fordham Corporate Law Center, Dudley said the banking system has still not fully recovered. He noted that bank credit losses lag the business cycle and are still climbing.

While banks' access to the capital markets has improved, they're still capital constrained and hesitant to expand their lending.