October 1, 2009
First American CoreLogic is out with its monthly report on commercial mortgage maturities, and the numbers speak directly to the shortfall between maturities and availability of debt.
According to the report:
- More than 77% of August maturities are located in the South and West Regions
- Over the course of this year, more than $164 billion in commercial mortgages will mature and need to be refinanced or sold. In August, approximately 8,833 properties, valued at $16.8 billion, matured representing 10.2% of the total dollar volume that will come due in 2009.
- The Southern Region accounted for more than 59% of all commercial mortgage maturities, and 27% of the mortgage value in August representing 5,008 mortgages, valued at $4.59 billion. The second most active region in terms of the number of properties was the West with 1,673 mortgages, valued at $5.07 billion maturing. The Midwest region had the highest total value of mortgages coming due in August with more than $6.6 billion maturing, more than half of which were industrial properties.
Transaction volume also remained severely depressed, with June numbers off 81% from the peak and down 50% YoY.
- Prudential CRE US Quarterly Update
- Distressed Commercial Real Estate Report
- NAR August 2009 Commercial Real Estate Outlook
- Decline Continues in Moody’s/REAL Commercial Real Estate Index: April Down 8.6%
- Fitch: Commercial Defaults to 4% by EOY 2010