Commercial property borrowers falling short

October 13, 2009

Commercial real estate loan delinquencies are on the rise again, and September’s increase is the largest ever, according to Moody’s Investors Service’s latest tally of those loans included in CMBS deals.

Delinquencies stand at 3.64%, up from 0.54% a year ago and 0.41 percentage points higher than August. The hotel sector showed the biggest increase in late payments, up 0.79 ppt to 4.97%. The multi-family housing sector now stands at 6.09% – the highest of any property type.

In terms of region, the South has been the hardest hit followed by the Midwest.

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