News about the US economy is almost always accompanied by news about home mortgages. Rarely, though, do you hear about the commercial real estate market and commercial mortgages.
In addition to declining sales, increased vacancies, and forced contract re-negotiations, the commercial real estate market is facing challenges regarding commercial mortgage delinquencies – just as the home real estate market has.
While commercial mortgage delinquencies are significantly lower than home mortgage delinquencies, they are rising. Just how much are they rising?
Check out this article from Realtor.org for the figures:
This article further details how rising commercial mortgage delinquencies lead to further danger even for well-performing properties because of the way these ventures are financed. Just check out the recent story of General Growth Properties, Inc. declaring bankruptcy, impacting over 150 of their well-performing retail properties. (Read more about General Growth Properties in this Wall Street Journal article.)