Commercial Loan Defaults Highest Since 1993 The default rate on commercial real estate loans held by banks hit 3.4 percent in the third quarter, up 0.52 percentage points from the second quarter, according to research firm Real Estate Econometrics.
At 3.4 percent, the default rate is the highest it has been since 1993 when it hit 4.1 percent. The default rate on apartment buildings is even higher, reaching 3.58 percent, up from 3.14 in the second quarter.
Real Point Chief Economist Sam Chandan says not all banks’ books of commercial business are in trouble because some with large exposure to commercial real estate managed their investments well, including conservatively analyzing loans and holding the borrower accountable for payment.
Source: Reuters News (11/30/2009)
REALTOR® Magazine-Daily News-Commercial Loan Defaults Highest Since 1993
No comments:
Post a Comment