The real estate cycle is beginning to re-exert itself in the commercial and multifamily property markets, concludes the Mortgage Bankers Association's (MBA) Commercial Real Estate/Multifamily Finance Quarterly Data Book for the third quarter of 2010.
During the third quarter, the economy began to show modest growth and absorption, picked up in the face of little new space coming online, the MBA says. The result has been marginal declines in vacancy rates and a firming of asking rents, the MBA says. In addition, property sales and origination volumes picked up, but volumes were not high enough to keep up with the mortgage debt that investors saw paying off and paying down.
The weak economy continued to exert pressure on the performance of properties and the mortgages they back, the MBA adds. Mortgage delinquencies were mixed in the quarter, with commercial mortgage-backed securities and banks/thrifts experiencing continued growth in delinquency rates.
SOURCE: Mortgage Bankers Association