Bloomberg CRE Videos: Delinquencies and Impact on GE

Jaime Woodwell, vice president of commercial real estate research for the Mortgage Bankers Association, talks with Bloomberg’s Carol Massar and Matt Miller about the commercial real estate market. Delinquencies on commercial mortgage-backed securities rose to a record in the third quarter as unemployment rose and landlords struggled to retain tenants.

Bloomberg’s Greg Miles reports on the [...]

DDR Issue Signals Slow Return of CMBS Market

Developers Diversified Realty is issuing about $400M in commercial backed mortgage securities (CMBS) in a sale that is reportedly three times oversubscribed. The highest quality tranche is reported to go at about 4%, which is about 280 bps above the 1-year LIBOR, which is pretty good.
Of course, part of what is driving the interest is [...]

Commercial Maturities Update from First American CoreLogic

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 [...]

Realpoint CMBS June Update – 2.275% Delinquency In May

The total balance of loans in Foreclosure and REO increased for the 19th straight month to $3.91 billion in May 2009 from $3.49 billion in April, despite ongoing liquidation activity.
…
In May 2009, retail loans became the greatest contributor to overall CMBS delinquency, at 0.73% of the CMBS universe and near 32% of total delinquency. Retail [...]

Honeymoon Period Over For Interest Only Commercial Mortgages

Interest only loans written during 2005 and 2007 will begin to roll off their “honeymoon period” and principle will also be due shortly as well, leading some landlords payments to hike up to 20% or more at a time when rents and occupancy are falling. Many of those loans taken out were based on the [...]

S&P on Insurers and CRE

 
Some insight from S&P on the health of insurers in the face of looming troubles in commercial real estate.
In February we conducted stress tests that simulated two depressed real estate markets between 1988 and 1995. In these tests, we paid special attention to the capital that might be needed to support the three largest components, [...]

YoY Rate of Commercial Delinquencies Up 5x

Commercial mortgage delinquencies are up to 2.45%, a number which is 5x the rate during the same period a year ago, and an 11-year high. The Bloomberg article reporting this number also indicated that from October of 2005 to last November, commercial delinquencies remained under 1%.
The highest segment which is delinquent is multi-family apartment loans, [...]

Fitch: Commercial Defaults to 4% by EOY 2010

Fitch analysts anticipate that commercial mortgage default rates will continue to increase this year. As of the end of the first quarter, defaults and payments late beyond 60 days stood at about 1.53%. Fitch has indicated that this number could reach 4% by the end of 2010.
Additionally, the amount of mortgages under the care of [...]

CRE Crisis To Eclipse Early 90’s

The WSJ has an article today on the accelerating pace of defaults and delinquencies on commercial loans, and the likelihood that the crisis could eclipse that which occurred in the early 1990’s. Some notable items in the article include:
According to an analysis of bank financial reports by The Wall Street Journal, the broad shift to [...]

Banks Bracing For CRE Defaults

An article in Bloomberg this morning provides some additional detail on bank exposure to commercial real estate. Most of the banks seem ready to take on the losses, but they don’t seem too worried, which is quite reminiscent of the early days of the crisis in the residential sector. According to the article:

The country’s 10 [...]