The current delinquency rate stands at the highest level since the recovery period after the last recession but still well below the 9% delinquency rate for CRE loans at the peak of the financial crisis.
However, there are signals in the data that some borrowers may be strategically defaulting on their loans which could feed a wave of foreclosures in the coming four to six quarters.
Las Vegas NV leads the US in 30 day delinquent office property loans.
Columbus Ohio, home of The Limited Stores brand, leads the nation in 30 days delinquent retail property loans.
Here is a shocking graphic. New York – Newark hotels have seen -62% decline YoY in appraised values whereas Los Angeles saw a -74% decline in appraised values of office space.
Total sales of commercial real estate has declined to the lowest since mid-2010 and The Great Recession.