16 May
Commercial Real Estate Defaults Headed To 6%
As you try to sort whether commercial real estate is indeed the next “shoe to drop” (as everyone’s saying) here’s a little more chartology, prepared by Pasquale Cardone at Realpoint, showing just how fast CRE loans are going sour.You can see it’s basically quadrupled since the crisis started last autumn, and at this rate, it’s easy to imagine it hitting 6% by the end of the year, which would be unheard of.
Still, even with the scary, default growth charts we’ve been kicking about, it’s worth thinking about ways that CRE won’t play out like residential real estate.
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