This Is A Commercial Real Estate Apocalypse Unlike Anything We’ve Ever Seen, Record Delinquencies (Video)
This Is A Commercial Real Estate Apocalypse Unlike Anything We’ve Ever Seen, Record Delinquencies Video by Silver Report
According to the data compiled by Morgan Stanley, a record 66 CMBS loans totaling $1.0bn became newly delinquent in April, which was the greatest month-over-month change on record. In total, 324 loans with a total balance of $4.8bn are currently delinquent, which is also an all-time high.
Even more troubling is the waves of delinquencies on the horizon a CMBS loan becomes delinquent after it misses two consecutive payments. Loans that have missed just one month of interest are classified as late but within grace period this jumped 8.5%The delinquencies in commercial real estate are now running 3 times higher than the great depression.
We see according to Fitch data, borrowers with mortgages representing almost $150 billion in CMBS, accounting for 26% of the outstanding debt, have asked about suspending payments this number was only 9% during the great recession which means the current number seeking to defer payment is 3 times higher than the record. This could be described as nothing less than a retail apocalypse in commercial real estate.