Luminent Mortgage Capital, Inc.Philidelphia, PA, United States (OTC: LUMC)

Credit Crunch Affects Commercial Real Estate - The effects of the US housing slump and the resulting credit crunch are seeping into the commercial real estate market, according to the Building Owners and Managers Association. Tighter credit standards have made it increasingly difficult to acquire capital for new projects and renovations, resulting in building owners finding it more difficult to attract and retain tenants. Tighter credit standards have also made selling buildings more difficult, as it costs potential buyers more to borrow money.

Building Location Affects Terrorism Insurance Availability - Owners of large, high-value US properties in areas where many large buildings are clustered find getting commercial property terrorism insurance coverage difficult, according to the Government Accountability Office (GAO). Buildings in urban areas viewed as at high risk of attack, such as Manhattan, are most difficult and costly to insure. GAO will release an in-depth report on the availability of commercial property terrorism insurance and how government policy can affect its availability in the second half of 2008.

US Office Vacancy Rate Rising - The US office vacancy rate, an indicator of revenue earned by real estate investment trusts, posted a quarter-to-quarter increase for the first time in four years, according to Grubb & Ellis. The office vacancy rate rose to 13.5 percent in first quarter 2008 from 13 percent in fourth quarter 2007. Grubb & Ellis had predicted that the office vacancy rate would remain flat at 13 percent throughout 2008.