Commercial Property Herald: CMBS Delinquencies Decrease for Third Month in Past Four. Does paying attention to the monthly changes make any sense?

Commercial Property Herald is written for the benefit of anyone in the commercial real estate, landlord tenant business. This includes property managers, lenders, owners, tenants. Subjects may include evictions, collections, foreclosure, management issues and bankruptcy matters relating thereto. It will contain helpful legal & business information as well as updates on the world of commercial real estate. The information contained in this Blog is for information purposes only and does not contain or constitute legal advice. You should not act or refrain from acting based upon any information posted on this Blog without first seeking the appropriate professional or legal advice

September 06, 2011

CMBS Delinquencies Decrease for Third Month in Past Four. Does paying attention to the monthly changes make any sense?

DS News reports that after rising in July, the CMBS delinquencies have again started dropping in July.

That can't be bad news, but is it good news?

Does it make any sense to pay attention to the month-to-month changes to anything if you are looking for trends? I say no. Just as I say no to a day or two days of ups or downs on the stock market although, admittedly, monthly trends in in the CMBS delinquency rate is more indicative of where the economy is goiong than the stock market.

This news does not encourage me because I know that there are a lot more defaults coming our way over the next two years. But defaults alone are not determinative of the health of the commercial real estate market. What I want to see is a steady and growing decrease in delinquency rates over at least 6 months for me to see an encouraging trend.

Sep 6, 2011 5:30:54 AM | Current Events, Economy

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