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Fun commercial real estate figures and charts

August 13, 2009

I just came across this research from the Cleveland Fed that has some scary numbers and charts on commercial real estate. They underscore why the Fed and the FDIC are so worried, particularly about construction and development loans, which are seeing the most stress.

Although commercial mortgage-backed securities (securitized CRE loans), have garnered their own significant amount of attention, they account for only 20 percent of outstanding commercial mortgage debt. Loans held by banks, meanwhile, account for 60 percent of the CRE debt market—much more than any other institutional holder. Also, unlike the residential mortgage market (where a majority of lending has been done by a few large banks), the array of banks holding large concentrations of commercial mortgage debt is broad and diverse.

And then take a look at their charts.



The Cleveland Fed is interested for obvious reasons.



The Economist has been on about the CRE problem for a while, but I didn’t grasp the extent until I read your blog.

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