According to Trepp the delinquency rate for commercial mortgage-backed securities (CMBS) increased by .12 to 10.16% in June, the highest rate ever recorded. Trepp counts a delinquency as any loan 30 days overdue through those loans actually in foreclosure. At this time last year the CMBS delinquency rate was 9.37%.
The CMBS rate of 60 or more days late was 9.73% in June compared to 8.75% in June 2011.
The weakest segments of the commercial market were among lodging, office, and retail loans while industrial property loans actually improved and multifamily held its own.
What has generally been happening in the commercial marketplace is short term loans with balloon payments have been coming due in large numbers in the past two years and over the next few years as well. Because commercial property values fell by as much as 40% in some instances property owners have not been able to refinance or sell without selling short.
The commercial marketplace has many wonderful opportunities right now for new investors with the qualifications to buy these properties out of a Short Sale or foreclosure and many attractive financing options available in the commercial arena.
Commercial Delinquencies Hit All-Time High is a post from: REWealthCoach.com, Bob Massey's site for real estate investment news, information, tips, videos and podcasts. Visit today! All material is copyright © 2010 Foundation Publishing, LLC.
