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Wednesday, January 06, 2010


by Calculated Risk on 1/06/2010 06:30:00 PM

A few related stories ...

From Jon Prior at HousingWire: CMBS Delinquencies Reach New All-Time High

For the first time since the industry began forming commercial mortgage-backed securities (CMBS), delinquencies reached above 6%, according to a report from Trepp, which studies commercial real estate trends.

For the month of December, 6.07% of CMBS loans fell behind by 30 days or more, up from 5.65% in November and a far climb from 1.21% in December 2008.
And from the MBA: Commercial/Multifamily Real Estate Market Continues to Feel Effects of Economic Downturn
Commercial real estate markets show the strains of the downturn.

Vacancy rates rose in the third quarter for all major property types. For apartment properties, vacancy rates rose from 6.5 percent in the third quarter of 2008 to 8.4 percent in the third quarter of 2009. Industrial properties saw vacancy rates rise from 9.8 percent to 13.0 percent; office properties saw a rise from 16.0 percent to 19.4 percent and retail vacancies rose from 12.9 percent to 18.6 percent.

And asking rents have been falling – by 6 percent for apartments, 9 percent for industrial properties, 9 percent for office properties and 8 percent for retail properties. Even with lease terms muting some of the impact, the combination of falling rents and rising vacancies has placed greater pressure on properties’ bottom-lines.
More on the MBA Quarterly report with graphs from Diana Golobay at HousingWire: Commercial, Multifamily Lags With Vacancy, Delinquency, MBA Says

And from early this morning: Reis: Strip Mall Vacancy Rate Hits 10.6%, Highest on Record