Commercial property is facing a tough time, but reports that it is likely to collapse and trigger a second round of the recession are exaggerated, three billionaire investors told CNBC Tuesday.
"I just don't believe that's the case," Sam Zell, chairman of Equity Group Investment, said about speculation that commercial real estate represents the second leg down of the financial crisis which hit the world two years ago.
"We haven't had a new real estate asset of any significance committed since July 2007," Zell said, adding that it may take another 24 to 36 months before a major project is committed.
Prices for commercial real estate have already fallen by about 40 percent, but the problem is that lots of owners are in negative equity now, said Richard LeFrak, president of the LeFrak Organization.