The percentage of commercial real estate loans paying off on their balloon date retreated sharply in March, according to new data from Trepp LLC.
In March, 36.4% of loans reaching their balloon date paid off. Only May 2011 had a lower reading over the last 12 months. The March number was also below the 12-month rolling average of 44.5%.
Trepp determined that by loan count – as opposed to balance – 43.1% of the loans paid off. On the basis of loan count, the 12-month rolling average is now 50.9%. Prior to 2008, the payoff percentages were typically well north of 70%.