According to Standard &
Poor’s CMBS quarterly report, the commercial industry continues to be
hobbled by falling demand for space and owners are unable to refinance
their loans, causing delinquencies to inch closer and closer to a
record peak. The report says that the CMBS delinquency rate is now only
11 basis points away from its peak of 1.96 percent, which was recorded
in December 2003, and that significant credit contraction has all but
eliminated viable refinancing options. S&P’s credit analysts Larry
Kay and Eric Thompson wrote: “Until liquidity returns to the
sector, we
expect special servicers to execute more extension agreements as part
of their 2009 loan workouts.” [more]