The percentage of commercial real estate (CRE) loans paying off on their balloon date barely budged last month, according to new data released by Trepp LLC. In August, 39.5% of loans reaching their balloon date paid off – down slightly from 39.6% in July. The August number was just above the 12-month rolling average of 39.2%.
Trepp points out that by loan count – as opposed to by balance – only 43.1% of the loans paid off. This was down over six points from July's reading of 49.4%. On the basis of loan count, the 12-month rolling average is now 48.8%.
Prior to 2008, the payoff percentages were typically well north of 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.
