Market trends, leading or lagging indicators. As it relates to industrial property.
In April, there was no significant movement in delinquencies specific to any one commercial real estate property type. Current delinquency rates by property type are as follows:
Hotel 18.42%
Multifamily 13.60%
Retail 5.83%
Industrial 4.60%
Office 3.97%
The proposed area for discussion for the new CleanTech Corridor in Los Angeles, California. The location surrounds the industrial property district near the LA River. We’ll see if any substantial development or absorption by cleantech companies occurs as this is a nascent concept at this time. Environmental product manufacturing companies are the target.
About 30 percent of newly delinquent commercial real estate loans in the U.S. were from commercial mortgage-backed securities loans originated in 2005, according to Fitch Ratings’ February delinquency index. Upcoming maturities for deals originated five years ago contributed to a delinquency rate that stood at 6.29 percent at the end of February.
Office properties had the largest increase in the loan delinquency index, growing by 45 basis points from January to a total rate of 3.5 percent. The hotel industry’s delinquency rate is the greatest at 16.6 percent, while multifamily is at nearly 9 percent, retail at 5.1 percent and industrial at 4.2 percent.