Wednesday, November 2, 2011

Commercial loan delinquencies up

The delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities rose last month - hitting its second-highest level in recorded history, according to Trepp, a real estate research firm.

In October, 9.77 percent of CMBS loans were delinquent 30 days or more or in foreclosure, up from 8.58 percent a year ago, Trepp says.

Charlotte-area delinquency rates are due to be released Thursday.

Commercial mortgage-backed securities are pools of real estate loans that have been packaged together and sold to investors. Packaged loans account for 20 percent of the nation's commercial real estate loans.

Industrial properties saw the biggest increase in delinquencies, which rose to 11.59 percent from 6.27 percent during the past year. Office property delinquency rates jumped to 8.95 percent from 6.68 percent a year ago. Multifamily property delinquency rates rose to 16.73 percent from 14.63 percent; delinquencies for retail properties inched up to 7.61 percent from 7.17 percent; and the delinquency rate for hotel properties fell to 14.12 percent from 14.92 percent last year.

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Anonymous said...

As many have previously predicted, first the homes would become delinquent, then commercial mortgages would be the second domino to fall....

Thanks to our witless Commander In Chief, expect more bad news to come until this buffoon gets voted out in 2012.

Anonymous said...

This is only the beginning. Buy gold and silver. It's the only way to protect yourself from the coming hyper-inflation

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