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Commercial Real Estate: US: Difference between revisions
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== Defaults == | == Defaults == | ||
Distressed U.S. commercial real estate debt rose to a 14-year high of 5.2% in February. | |||
Total distressed CMBS debt jumped to $1.84 billion from January’s $686 million. | |||
* Office properties accounted for about 44% of all defaulted commercial mortgage-backed security debt transferred in February to special servicers to work out payments, according to CMBS data firm Trepp. | |||
* Debt backed by retail properties comprised 32%, and multifamily 19%. | |||
* "We anticipate a lot of loans to reach their maturity date and be unable to fully pay off or refinance," Trepp's Jack LaForge said in an e-mail. "In order for special servicing rates to go down, lending conditions would have to soften a lot, and interest rates will have to go down for this to be possible.”<ref>https://www.investopedia.com/distressed-cre-loans-rose-to-5-2-in-february-7373644</ref> | |||
The delinquency rate on commercial real estate loans at U.S. banks went up in the fourth quarter of 2022 after declining sharply a quarter earlier. | |||
Loans more than 30 days past due and those in nonaccrual status constituted 0.65% of CRE loans at the end of the quarter, up from the delinquency rate of 0.58% as of Sept. 30, 2022, according to an S&P Global Market Intelligence analysis. | |||
Despite the uptick in the fourth quarter of 2022, the CRE loan delinquency rate was down 6 basis points from the end of 2021. | |||
The number of U.S. banks exceeding regulatory guidance on CRE loan concentration increased for the seventh straight quarter. The count climbed in the fourth quarter to reach 567 as of Dec. 31, 2022, from 539 at the end of the linked period and 421 a year ago. <ref>https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/commercial-real-estate-loan-delinquency-rate-at-us-banks-sours-in-q4-22-74508846</ref> | |||
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== Exposure<ref>https://insight.factset.com/assessing-cre-exposure-across-the-financial-sector?utm_content=244750227&utm_medium=social&utm_source=twitter&hss_channel=tw-17473062</ref> == | == Exposure<ref>https://insight.factset.com/assessing-cre-exposure-across-the-financial-sector?utm_content=244750227&utm_medium=social&utm_source=twitter&hss_channel=tw-17473062</ref> == | ||