Newly released data from property research firm Trepp LLC shows commercial mortgage delinquencies in the U.S. spiked to the highest level in at least 11 years in April as scarce credit made it difficult for landlords to refinance loans. The delinquency rate in mortgages on rental apartment buildings rose to 5.24% in April – up 1.38% – from 3.86% in March.
From Bloomberg: The percentage of loans 30 days or more behind in payments rose to 2.45 percent, Trepp LLC said… The delinquency rate was more than five times the year-ago number, Trepp said. The New York-based researcher’s records go back to 1998.
“It’s about as bad as it’s ever been,” said Thomas Fink, a Trepp senior vice president. “I don’t think we’re done yet.”
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Commercial property values fell 21.5 percent through February from their October 2007 peak, according to Moody’s Investors Service.Properties bought in 2006 are now worth on average 11 percent less than their original price, and those bought in 2007 are worth almost 20 percent less, Moody’s said.
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