CMBS delinquency rates continue rising

The delinquency rate for commercial mortgage-backed securities climbed over 9 percent, a sign that the weak economy is continuing to affect commercial property owners, the Wall Street Journal reported. As of yesterday, 9.05 percent of about $694 billion in commercial mortgages that back outstanding CMBS were 30 days or more delinquent, according to the Trepp national CMBS delinquency report, compared with 6.49 percent at the beginning of the year, 1.2 percent at the end of 2008 and 0.38 percent at the end of 2007. The lodging sector was hit the hardest, with a delinquency rate of 19.3 percent, more than three times its rate in September 2009. Industrial property had the lowest delinquency rate, at 6.49 percent. The delinquency rates for office, retail and multi-family were 6.61 percent, 7.13 percent and 14.4 percent, respectively. [WSJ]