Commercial Delinquencies Continue UP!!!!!

Commercial Real Estate Wilts As Delinquencies Soar

Joe Weisenthal|Jun. 16, 2009, 6:24 AM|2
PrintTags: Economy, Real Estate, Recession

Commercial real estate delinquencies broke 2% for the first time in May, observes rating agency Fitch. Weakness across various areas pushed the delinquency rate higher by 29 basis points from the previous month per a report summarized by Research Recap. Meanwhile Moody's, tracking the same thing, thinks the delinquency rate could hit 4-5% by the end of the year.

Arguably, what matters is not performance of these properties but how the market values them today, since a lot of this is expected. So how's that looking? Not good.

Pragmatic Capitalist put up a chart of the latest CMBS action, which has fallen sharply since a rally in late April and mid May (which we discussed here).