Percentage Of Commercial Loans Paying Off Hits 12-Month Low

Posted by Orb Staff on August 08, 2012 No Comments
Categories : Commercial Mortgage

12155_cre_shine Percentage Of Commercial Loans Paying Off Hits 12-Month Low The percentage of commercial real estate loans paying off on their balloon date hit a 12-month low last month, according to new data from Trepp LLC.

Trepp reports only 26.3% of loans reaching their balloon date paid off. This is well under the 12-month average of 41.6%. By loan count (as opposed to balance), 53.3% of loans paid off. On the basis of loan count, the 12-month rolling average is now 52.2%.

Trepp adds that the disparity between the volume-based total and the count-based total indicates that it was mostly small-balance loans that managed to payoff in June. Prior to 2008, the monthly payoff percentages were typically well north of 70%, but since the beginning of 2009, there have only been four months in which more than half of the balance of loans reaching their balloon date actually paid off.

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