Posted on Thursday, February 25, 2010
Default rates on office, retail, hotel, and industrial loans are up to 3.8% as of Q4 2009 verses 1.6% in Q4 2008.
Real Capital Analytics reports:
Defaults on multifamily mortgages soared even higher – a staggering 250% jumping from 1.8% to 4.4%
There are 8,942 commercial properties in the United States classified as “distressed,” representing a combined volume of $183 billion. And those figures are expected to go higher still.
Projects defaults on office, retail, hotel, and industrial properties will rise from 2009’s 3.8% to 5.1% by Q4 2010.
Multifamily defaults will peak earlier at 5.3% by Q4 2010.