Article: Real estate problems proving intractable. (banks and real estate)

Real Estate Problems Proving Intractable

Even as the economy shows signs of rebounding, bankers are still mired in worsening real estate problems that a recovery in other sectors will not solve anytime soon.

"What we have now is a unique set of circumstances. Even a recovery in the economy won't create demand for new offices, hotels, or commercial space," said Kenneth Leventhal, whose firm, Kenneth Leventhal & Co., specializes in real estate workouts.

Rents Seen Declining

Anthony Downs, who follows real estate at the Brookings Institution, said: "Things are pretty lousy. Rents are still falling, and will for the rest of this year and ...

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