The percentage of commercial real estate (CRE) loans paying off on their balloon date jumped in June, according to Trepp LLC's June Pay Off Report. Trepp adds that this rise follows two consecutive months in which the percentage fell.
In June, 42.4% of loans reaching their balloon date paid off, which is over 7% above the May reading. The June number was above the 12-month rolling average of 39.6%.
By loan count – as opposed to balance – 56.1% of the loans paid off. That was also up from May's 48.1% reading. On the basis of loan count, the 12-month rolling average is now 48.2%.
Trepp adds that prior to 2008, the payoff percentages were typically above 70%. Since the beginning of 2009, however, there have only been two months where more than half of the balance of the loans reaching their balloon date actually paid off.
