Commercial Mortgage Delinquencies Continue Their Downward Trend
The delinquency rates for commercial mortgages continue to decline, according to the Mortgage Bankers Association. This a national trend and it is no different in the St. George Commercial Real Estate Market. Rewinding back a few years, a large portion of the available properties for sale were either short sales, or bank owned assets. There were more properties than buyers, and it greatly affected the prices of both for sale and for lease assets. Fast forward to September, 2015, and we are seeing positive trends for landlords/sellers. The market continues to improve, which means ask prices for both sales and leases continue to rise steadily. Consequently, there are much fewer commercial delinquencies.
Jamie Woodwell of Commercial Real Estate Research said, “Commercial and multifamily mortgage delinquency rates were down broadly in the second quarter, with highlights including the lowest 90+day delinquency rate on bank-held multifamily loans since the series began in 1993.”
We are seeing positive trends in the St. George Commercial Real Estate Market, which include lower vacancy rates, higher lease rates, longer lease terms, and less delinquency.
For any Commercial Real Estate Questions, contact Brandon Vandermyde at brandonv@naiutahsouth.com.
