According to a report issued by Deutsche Bank the Wall Street Journal has published, the delinquency rate for commercial real estate has been rising dramatically over the past few months. Fro a relatively neutral position up until August, 2008, the rate has bee rising rapidly.
Monthly Commercial Real Estate Deliquency Rate Change
| Aug-08 | 0.90% |
| Sep-08 | 9.10% |
| Oct-08 | 11.50% |
| Nov-08 | 23.00% |
| Dec-08 | 21.60% |
| Jan-09 | 27.80% |
| Feb-09 | 17.20% |
| Mar-09 | 17.50% |
These are the sort of numbers that have lots of investment banks and real estate investors very nervous. The rising deliquencies will have the same effect as the foreclosures on the residential real estate market, it will drive down prices significantly and make selling commercial properties even more difficult.
On page 12 of the report they discuss multifamily housing. In this case the picture tells the story.
The Deutsche Bank report has been very well done in with lots of graphs that even the average person can understand.
No related posts.
{ 2 comments… read them below or add one }
Unfortunatley this is just the beginning. By the end of the year, we will have forgotten about sub-prime and talking about commercial real estate failures.
Thanks for wrapping this up. I find this very important with regards to real estate investments .
Regards,
Steve Dye We Buy Nor Cal Homes
{ 1 trackback }