The Real Deal Miami

Commercial loan delinquencies accelerate

March 26, 2009 02:15PM

The delinquency rate on commercial real estate loans has more than doubled since September, hitting 1.8 percent this month, according to data from Deutsche Bank AG. That rate is only slightly below the highest rate reached during the last downturn. Commercial real estate debt could be particularly damaging to the financial system because there is so much of it. Commercial real estate in the U.S. is worth $6.5 trillion and financed by $3.1 trillion in debt, according to trade group the Real Estate Roundtable.