It is reported by Barrons.com that Hurricane Harvey caused major flooding in Houston and the surrounding areas, breaking rainfall records whole hitting an estimated $19.4 billions dollars in properties financed by commercial mortgages in Texas. A total of 18 counties in Texas that home these properties have officially been declared disaster areas. In fact, Harris County alone had just $16 billion dollars in properties that were hit hard and saw destruction by the category 4 storm.
High vacancy rates in the Houston area were an issue well before Hurricane Harvey made landfall in southeastern Texas. The vacancy rate was the highest the area has seen since 1994, nearing 19 percent at the end of the 2nd quarter of this year. That happens to be a 14 percent increase in vacancies in just the short time of three years. Since Texas has been working on recovering from that, it could be even more challenging because of the major flooding that damaged the area brought on by Hurricane Harvey. The flooding could very well jeopardize the ability to pay-off some of these debts.
With a struggling real estate market that was already in place before the storm, most expect that the recovery time from the damage caused by Hurricane Harvey could be a long and difficult road. But luckily, some are forecasting that the damage will be recoverable and maybe even in a quicker time frame than previous hurricanes that have rocked the United States.
Morningstar analysts are trying to forecast how the area will recover from Hurricane Harvey. They had a total of 10 properties in the flood zone that happened to be their largest properties backed by commercial mortgages in Texas. The company was only able to reach one of the properties, the Two Allen Center. Even though they are temporary closed, they reported no flood damage.
Some of the properties hit the hardest from the storm were lucky enough to have flood insurance that will cover most of the damage costs, but they still have a long road ahead of them to fully recover. Commercial mortgages in Texas were suffering before the hurricane, but hopefully the impact of Hurricane Harvey isn’t too devastating, but it could take months to get that answer. But there is some news on local properties. According to Willowbrook Mall and Deerbrook Mall’s website, their properties were closed until further notice, not stating if damages from the floods were the cause.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.