[bratticus]

$this->bbcode_second_pass_quote('Anjorni', 'I') find it interesting that I havent heard nearly as much on the commercial R.E. front as i did regarding residential R.E. when T.S.H.T.F. there. Isnt there much larger problems, as well as much more money at stake with commercial R.E.?

[bratticus]

Commercial Delinquencies are now #1

$this->bbcode_second_pass_quote('', '[')b]US CMBS Delinquencies Up 18% In March; Only Health-Care Properties Exempt

... The office sector's delinquencies rate surged 48% just last month, while the amount of retail loans behind - $3.46 billion - overtook multifamily ones as the biggest source of delinquencies.

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]CMBS Delinquencies Continue Upward Climb

May 18, 2009

A new Realpoint report shows that commercial-mortgage backed securities (CMBS) delinquencies rose by $3.26 billion in April, to a trailing 12-month high of $17.15 billion.

...skip...

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]CMBS Loan Defaults On the Up

By JACOB GAFFNEY
HousingWire.com
May 18, 2009 11:29 AM CST

Defaults on commercial real estate loans are rising according to Fitch Ratings, at least in the case where such loans are linked to commercial mortgage-backed securities (CMBS).

What’s more, the defaults are concentrated to certain states in America, highlighting a trend of geographically related performance.

Michigan is seeing the highest proportion of loans currently in default for any state, with 6.89% of all loans at least 60 days delinquent or in foreclosure, according to Fitch. 100 commercial loans in the state fit into this category at a total $501m.

The average rate of default among the hardest hit states increased 25bps to 1.78%, according to the rating agency’s monthly CMBS loan delinquency index.

“Emerging trends suggest that collateral located in states facing the bleakest economic conditions are seeing systemic declines in occupancy and net operating income, which have pushed property valuations lower and loan default rates higher,” says Fitch’s head of US CMBS Susan Merrick. “Maturity defaults represent a diminishing proportion of the index at 8.3%, while performance defaults continue to rise.”

Rates of defaults remain comparatively high in Tennessee (6.57%), Ohio (4.34%), Indiana (4%) and Rhode Island (3.76%).

... snip ...

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]Gold Breaks 7-Week High as Dollar Falls, World Economy Sinks; Correlation with Equities Turns Negative

... Yesterday the Federal Reserve added commercial real-estate mortgage bonds to the list of "legacy" investments it's willing to lend against under the Term Asset-Backed Securities Loan Facility (TALF). The $700 billion CMBS market – which financed some 20% of outstanding US commercial property loans, but "came to a standstill in mid-2008" as the Fed puts it – rallied on the news.

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]Batten down the hatches

... When [commercial] mortgages start to reset at higher rates this year the defaults will pile up and the losses will hit the end-investor - in this case, large pension funds in the US, Europe and Japan, says Lo.

[bratticus]

My Vacations Plans Are Ruined By The Collapse of Commercial Real Estate

$this->bbcode_second_pass_quote('', '[')b]$3.9bn Las Vegas Casino Project Goes Bust

... The $3.9bn (£2.3bn) project would have been one of the biggest resorts in Vegas, with 3800 rooms, 27 bars, multiple swimming pools, executive meeting spaces and over 1700 slot machines. However, the money has run out and the group behind the Fontainebleau casino is now locked in a bitter legal row with investors.

[Ferretlover]

You are such a little ray of sunshine today, brat!

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]Crescent Resources files for bankruptcy

... The company listed both assets and liabilities of more than $1 billion.

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]S&P Puts $235.2B In CMBS On Watch For Possible Downgrade

... Commercial delinquencies, which long lagged the problems in the residential market, have been spiking since mid-2008 as the recession deepened, vacancies increased and new owners have been unable to refinance mortgages.

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]Commercial Real Estate Debt Reaches $40B

... Among large loans added to special servicing recently were a $157 million mortgage on Southfield Town Center in Southfield, Mich.; a $141 million loan on a retail portfolio controlled by a Developers Diversified Realty partnership; a $130.1 million mortgage to a DLJ Real Estate Capital Partners partnership on six hotels, encompassing 1,159 rooms, in California and Oregon; a $98.7 million mortgage to Educational Realty on nine student-housing properties, encompassing 1,073, in six states; and a $90 million mortgage to Millennium Partners on the 277-room Four Seasons San Francisco hotel.

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]Landmark Watergate Hotel, Vacant for 5 Years, Faces Foreclosure

... Watergate, a name synonymous with the late President Richard M. Nixon, is in the news again.

[JJ]

and yet we have new hotels popping up here and in the neighboring town because the city council sees a need based on the high tourism projections for next year? (Burnet, Texas) Although I saw no construction workers at one site yesterday....wonder if they've hit a snag?

They finally opened the big Walgreens downtown after months of delays; its spooky. There is only one item of each thing on the shelf, pushed way up to the front. The store looks really empty. A lot of people looking, but no one buying. Don't give them much hope....

edited for spelling

[bratticus]

$this->bbcode_second_pass_quote('', '[')b]Cabrini files for bankruptcy protection

... Cabrini Medical Center filed for Chapter 11 bankruptcy protection Thursday, citing net assets of $46 million and liabilities of $167 million.

[deMolay]

Boy is this ever true. http://theautomaticearth.blogspot.com/2 ... ation.html

[deMolay]

I think we are reaching a tipping point. From article. [Around the country, the relationship between rising unemployment and foreclosures is growing. An Associated Press analysis of more than 3,100 U.S. counties found a much stronger link between foreclosure rates and unemployment this year than in 2007. According to April figures, some of the highest unemployment rates in the country are in California cities like Merced, Modesto and Fresno that have been struck hardest by the foreclosure crisis. In those areas, home prices have been cut in half. Even in areas where unemployment is lower, borrowers are struggling.]

[IslandCrow]

Empty shop premises 'to hit 15%' (in the UK): http://news.bbc.co.uk/2/hi/business/8160575.stm

$this->bbcode_second_pass_quote('', 'A')bout 15% of High Street shops will be empty by the end of 2009.....

This would be more than double the 7% of stores which were vacant at the start of the year.

....some areas had already seen up to 40% of shop space empty, amid the slump in consumer confidence.

Big names such as Woolworths have disappeared from the High Street, but overall, UK retail sales have not collapsed, as some had feared....

"It is clear that in many places, recession is accelerating a trend of decline that was already under way,"...

"The dangers associated with this deteriorating picture are clear. Vacant units are perhaps one of the most visible impacts of the economic downturn. Shoppers who are unable to ignore increasingly visible vacant units in their local communities are likely to further reinforce falling consumer confidence"

[Ferretlover]

$this->bbcode_second_pass_quote('', '[')b]Shoppers who are unable to ignore increasingly visible vacant units in their local communities are likely to further reinforce falling consumer confidence"

[the48thronin]

$this->bbcode_second_pass_quote('Ferretlover', '')$this->bbcode_second_pass_quote('', '[')b]Shoppers who are unable to ignore increasingly visible vacant units in their local communities are likely to further reinforce falling consumer confidence"