The Bankwatch

Tracking the consumer evolution of financial services

Commercial Real Estate vacancies rise significantly in US

As predicted by several folks 2 years ago the next shoe to fall, Commercial Real Estate is underway in the US.  Expect to see boarded up vacancies in malls again as we did 20 years ago.

Commercial Real Estate Time Bomb Slowly Exploding | Kimberly’s US Economy Blog

The mortgage delinquency rate for commercial real estate (apartments, retail, office and manufacturing) continues to worsen. According to Real Capital Analytics,  4.17% of loans defaulted in the first quarter of 2010. This is $45.5 billion in bank-held loans. It is higher than both the 3.83% rate in the fourth quarter of 2009 and the 2.25% rate a year ago.

To put this into perspective, it is much worse than the .58% default rate in the first half of 2006, but not as bad ad the 4.55% rate in 1992.

Written by Colin Henderson

June 22, 2010 at 10:52

Posted in Uncategorized

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