October CMBS Delinquency Rate Falls

For the first time in months, CMBS delinquency rates fell by 47 basis points to 8.58% in October 2010, marking the first month-to-month drop in a year. According to Trepp, a leading provider of CMBS and commercial mortgage information, the decline was due to refinancings, notes sales and liquidations. The biggest contributor to the decline in the rate was the final resolution of the huge Extended Stay Hotels loan which accounted for 59 basis points. Further decline in the rate is expected as more delinquent loans are resolved. The final resolution of the Stuyvesant Town would reduce the rate by another 40 basis points. See our video on the Stuyvesant Town to learn the history of the largest commercial real estate loan default in US History at Stuyvesant Town Video.

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