CMBS Delinquency Rate Reduction Accelerates; Possible ‘Inflection Point’ Ahead?

Institutional Investment and Finance   |   Real Estate   |   October 4, 2018
Share Share Page
Carlton Fields Executive Director - Financial Services, Brian Olasov, was quoted in the Mortgage Bankers Association Newslink article, "CMBS Delinquency Rate Reduction Accelerates; Possible ‘Inflection Point’ Ahead?" discussing the commercial mortgage-backed securities delinquency rate’s notable drop.
The commercial mortgage-backed securities delinquency rate has consistently been falling, though the speed of improvement recently accelerated.
Industry insiders suggested that the forward-looking risk is increasing, potentially bringing about a delinquency rate inflection point within the next two years.
However, net operating income for commercial properties has increased.
"Given that there's an adverse selection bias among reporting borrowers — healthy properties are likelier to share operating results as opposed to weak properties — the 60 percent of respondents likely overstate overall growth,” Olasov noted.
Olasov also remarked, "The more likely near term outcome is an environment with flat revenues. These flat revenues may be undermined by inflating operating expenses.”
Read the article.

Subscribe to Publications

Media Inquiries

Contact the Media Team


The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.