Commentaries

Moody’s Investors Service, which keeps tabs on the commercial real estate sector by way of a traffic light color scheme, has very little in the way of good news about the market that many view as the second shoe of the credit crisis.

The rating agency reports that for the first time in six years, none of the seven property types tracked in its quarterly survey scored a green rating, or the strongest category, with full service and limited service hotel sectors still at rock bottom of its scoring system.

The overall commercial real estate market scored 34 (out of 100), putting it at the weakest shade of yellow. New York and Los Angeles, the two largest markets supporting commercial real mortgage-backed securities, saw double digit drops in their scores to just 36.

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