Are commercial real estate loans going to hurt banks?

Collman & Karsky Architects of [tag]Tampa[/tag] has increased its staff by nearly a third since late 2004, trying to keep pace with surging demand for sleek new office, condo and retail buildings. “The vacancy rate for [tag]office space[/tag] is in the 10% range (or lower). As that approaches down to the 6% range, we’re going to be seeing more speculative [tag]office buildings[/tag],” says Rodney Collman, a principal at the firm, discussing local conditions. “We still have about 1,000 people a day moving into Florida. We’ve got a lot of housing needs.” Professional Real Estate Development

[tag]Commercial real estate[/tag] has surged after several down years. That’s good news for the economy and firms like Collman’s. But it’s worrying federal officials, who note many banks are carrying a heavier concentration of real estate loans today than they did during a heady 1980s boom — a boom that ended in a bust, forcing many lenders out of business.

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