Commercial Property also being Affected
As pointed out in Business Lexington, even the commercial real estate market is feeling the pinch.
“The national commercial real estate market bubble has been deflating steadily for almost three years with values down approximately 40 percent from 2007 highs.
While even in a continuing bearish economy, Lexington is experiencing more development activity than many, if not most, other mid-sized to major American cities, the Bluegrass is not immune to worrisome market forces in commercial real estate.”
And even commercial loans go into default. “On the national scene, many borrowers have already been struggling to meet monthly payments. According to Trepp, the New York-based provider of Commercial Mortgage-Backed Securities (CMBS) and commercial real estate information, analytics and technology, the delinquency rate of securitized commercial real estate loans hit 4.8 percent in October, dwarfing the 0.77 rate a year earlier.”
The entire article is definitely worth the read.
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