Tea Leaves: The WSJ reports today that delinquencies among U.S. commercial mortgage-backed securities (cmbs) surged to by a record amount in September 2009, according to Moody’s Investors Service, highlighing the ongoing trials and tribulations of the commercial real-estate market.

Occupancy rates and rents are falling, which, coupled with an inability to refinance debt, is resulting in an acceleration of woes for property owners. September 2009’s delinquency rate of 3.64% compares with 0.54% a year earlier.

• The hotel industry posted the largest increase in September, rising to 4.97% from 4.18% in August.
• Multifamily delinquency rates continued to go up, climbing to 6.09% from 5.51%, the highest of any property type.
• The delinquency rate for loans on retail properties rose one-third of a point to 3.76%.

Moody’s said delinquency rates continued to be highest in the South at 5.14%, up from August’s 4.66%. The East was the only region with the delinquencies below the national average - with a rate of 2.14%, up from 1.84% a month earlier.

Arizona, Michigan and Nevada all have delinquency rates nearly three percentage points higher than any other state, with rates of 9.32%, 9.29% and 9.14%, respectively. Ohio was the next highest, at 6.22%.

Tags: CMBS Delinquencies Surge

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