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.