Commercial Mortgage Default Rate in U.S. More Than Doubles

http://www.bloomberg.com/apps/news?pid=20601103&sid=aj9Yttz_UYxg

Feb. 24

By Dan Levy and David Henry

The default rate for commercial property mortgages held by U.S. banks more than doubled in the fourth quarter and may reach a peak of 5.4 percent at the end of next year, according to Real Capital Analytics Inc. The default rate for loans on office, retail, hotel and industrial properties surged to 3.8 percent from 1.6 percent a year earlier, the New York-based real estate research firm said yesterday in a report. The default rate for loans on apartment buildings climbed to 4.4 percent from 1.8 percent.