Commercial Mortgages Rates
The latest data indicate delinquency rate increased by 9% for commercial mortgage-backed securities (CMBS). This is an ominous sign as commercial property owners are seriously having trouble paying their mortgages. Let us further explore this important development of Commercial Mortgages Rates.
TROUBLING DATA
According to TREPP National CMBS Delinquency Report, 9.05% of about $694 billion in commercial mortgages that back outstanding CMBS were 30 days or more past due as of September 28, 2010.
TROUBLING COMPARISON
The data should be ominously compared with 6.49% at the start of this year, 1.2% at the end of 2008 and .38% at the end of 2007, based on Trepp National CMBS Delinquency Report.
TROUBLING SECTORS
All commercial sectors by and large are performing very poorly. In particular, the lodging sector has the most troubling delinquency rate of 19.3% while the industrial sector relatively with 6.49% is the best performing one. In addition, multifamily and retail have respectively 14.4% and 7.13% while office sector’s delinquency stand at 6.61%.
In fact, the data paint a rather troubling outlook for the commercial sector, as a whole. Nonetheless, we should remain hopeful and take preemptive actions to further shield ourselves against such financial havoc.
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DORON EGHBALI is a Partner at the Beverly Hills Offices of Law Advocate Group, LLP. He Primarily Practices Business, Real Estate and Entertainment Law. Doron Can Be Reached at: 310-651-3065.
The latest data indicate delinquency rate increased by 9% for commercial mortgaged-backed securities. This is an ominous sign as commercial property owners are seriously having trouble paying their mortgages. Let us further explore this important development.
