The Real Deal New York

Distressed loans linked to CMBS on the rise

January 04, 2012 02:30PM

The number of distressed loans tied to commercial mortgage-backed securities inched up last month, according to information from analytics firm Trepp, the Wall Street Journal reported. About 9.6 percent of CMBS loans tied to all types of commercial property were at least 30 days delinquent, up from 9.5 percent in November. Office properties led the pack in delinquency. The delinquency rate for offices hit 8.97 percent in December, up from 8.29 percent in September and 6.93 percent in 2010. The number of distressed loans tied to CMBS inched up last month, according to information from analytics firm Trepp, the Journal said. About 9.6 percent of CMBS loans tied to all types of commercial property were at least 30 days delinquent, up from 9.5 percent in November. Office properties led the pack in delinquency. The delinquency rate for office buildings hit 8.97 percent in December, up from 8.29 percent in September and 6.93 percent in December 2010, likely due to the nature of office leases, which typically have terms of 10 to 20 years, meaning distress can appear long after the economy first takes a hit. [WSJ]