Ga Leads Nation in Bank Failures....Is Savannah in the mix?

So far, 2009 has seen 123 banks fail in the US. About 90 of those have been in the last 6 months with spikes in July(24) & October (20). With only 25 in '08 & 3 in '07, the numbers paint a concerning picture.

Georgia rates 1st in the nation with the most closures at 21 per the New York Times. That is 4 times the closures from 2008. The majority of the closures have been around the Metro Atlanta area (See map) with the latest just last week. On Nov. 6th, United Security Bank in Sparta was acquired by Ameris bank in Moutrie.

No Savannah banks have made the list but, some are definitely having a challenging time. From a commercial borrowing standpoint, it is challenging to get loans. Lenders want 20-30% down for non-owner occupied commercial properties and want the Net Income to total 1.2-1.3 times the monthly mortage payment. That can be a stretch for the average investor but, the cash strong player can definitely find bargains in our market. map courtesy of portalseven.com

Rex Benton is a Commercial Real Estate Advisor for Mopper-Stapen, Realtors. He can be reached at the downtown office at 912-238-0874. Office, Industrial, Retail & Investment properties. To learn more about Rex, read his BIO.