Commercial Property Loan Delinquencies Down - Due to Law Changes

From Yahoo! Finance: Fitch: Commercial property loan delinquencies down Fitch says commercial real estate loan delinquencies fell in Nov., helped by loan extensions NEW YORK (AP) -- Delinquencies on commercial real estate loans fell in November due to lenders allowing more loan extensions than in the previous month, Fitch Ratings said Monday.

The delinquency rate for commercial real estate collateralized debt obligations, or CDOs, fell to 2.8 percent last month from 3.13 percent in October. That marked the first decline since July.

There were 45 new loan extensions in November, up from 35 in October. Fitch expects an average of 40 extensions each month going forward, measuring 3.5 percent of loans in the commercial real estate CDO universe.

Fitch rates 35 such CDOs, which represent 1,100 loans and 370 securities and assets with a balance of $23.8 billion.

As the economy deteriorates, Fitch expects delinquencies to rise with the riskiest loans backed by hotel and retail properties. Chicago-based shopping mall owner General Growth Properties Inc. is struggling to stay afloat with its staggering debt load, and is still negotiating for another extension on $900 million worth of mortgage loans for two Las Vegas malls.

From Calculated Risk: Office Landlord Advice: "Go Ugly Early."

From the Business Ledger: Vacancy rates skyrocket in [Chicago] I-55 corridor

[A] slowdown in leasing along with new speculative buildings coming online and new sublease space hitting the market have combined in a “perfect storm” ... Since Jan. 1, the I-55 corridor vacancy rate has risen from 11.66 percent to 18.5 percent at the end of the third quarter.