End of an era -- Mortgage pie to shrink -- Historical analysis -- New capital sources needed -- Deleveraging to impact real estate -- Important disclosures

Report looks at the need for the US commercial real estate market to deleverage, after an unprecedented and arguably unwise ballooning of the mortgage market between 2003 and 2008. Provides a historical analysis of the problem and suggests that new sources of capital will be vital as less money is available from traditional lenders seeking to reduce their amounts of debt and stabilise capital. The authors state that the slowing of the real estate market will have a further adverse effect upon the US economy as a whole and that the sudden change to a risk-averse lending climate will cause difficulties for businesses seeking to refinance loans. The report closes by saying that there will be opportunities in the current market for those with available capital to buy assets from overleveraged firms in the event that refinancing is not an option. Caution is advised, specifically with regard to the pricing of risk.