🚨 Office CMBS Crashes Past 2008 Lows
Delinquencies hit 11.8% as lenders freeze deals and loans trade at 30-40 cents on the dollar
The office CMBS delinquency rate just hit 11.8%, worse than the 2008 crisis, because borrowers can’t keep up with payments and lenders have stopped writing new deals.
One major office REIT already collapsed into Chapter 11 after missing its debt payments, and creditors are now seizing properties to sell them off in court.
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More properties are headed for default in the coming months as the credit crunch tightens.
That means fire-sale opportunities are starting to pile up for anyone ready to bid early.
The window to lock in deals before competition returns is open right now.
In this edition of the AltReports:
🏢 Office CMBS delinquencies smash 2008 records
🏚️ Office REIT collapses into Chapter 11 bankruptcy
📈 CMBS defaults climb again after brief pause
🏘️ Apartment vacancies hit 15-year highs
🏭 Industrial and hotel deals trading at steep discounts
🏠 Indianapolis housing market cracks under pressure
Video of the Week: Florida Is Facing the Biggest Housing Collapse in U.S. History
Chart of the Week: CMBS Delinquency Rates by Major Property Type
Podcast of the Week: Don’t Work for Money — Make Money Work for You
Office CMBS Delinquencies Smash Records, Multifamily Joins the Downturn
The delinquency rate on office CMBS spiked to 11.8%, eclipsing even the worst of 2008, and multifamily CMBS are now at 7.1%.
That surge shows borrowers are falling behind as landlords scramble for cash and banks pull back on new deals.
💡 Investor Takeaway: Office and apartment loans are selling 30-40% below face value.
Office REIT Collapses Into Chapter 11 After Warning
The office REIT behind a string of downtown towers just filed for Chapter 11 after warning it couldn’t service its secured debt.
Creditors are moving in to seize properties and prep for a court-ordered fire sale as financing vanishes and vacancies spike.
💡 Investor Takeaway: Track this bankruptcy filing in court records to see when those properties go to auction.
Office Debt Woes Reignite CMBS Delinquency Climb in October
CMBS delinquency rates ticked up in October as office loans led the charge back into default.
This uptick after a brief lull signals mounting credit stress in commercial real estate and more fire-sale assets on the horizon.
💡 Investor Takeaway: Start lining up bids on off-market office CMBS before prices start to rise again.
Multifamily Credit Cracks Open as Vacancies Surge
Apartment vacancy rates are climbing to 15-year highs while rent growth has all but dried up.
Lenders are pulling back, credit spreads are blowing out, and a wall of debt is barreling toward potential default.
💡 Investor Takeaway: Target markets with looming loan maturities and beaten-down multifamily properties.
CRE Deals Dry Up While Industrial and Hospitality Stand Tall
Lenders are pulling back and deal volume in commercial real estate has collapsed, leaving most sectors parched for new financing.
Industrial and hospitality assets keep trading at steep discounts because they’re holding up cash flow, while office and retail are sinking under debt pressure.
💡 Investor Takeaway: Low competition means better deals.
Indianapolis Housing Cools; Distressed Deals Brewing
Indy’s housing market just choked on rising inventory and flatlining prices, turning last year’s bidding wars into buyer’s markets.
Supply is up 25% and price hikes have evaporated, pushing sellers to slash prices and creating cracks in what looked like a bulletproof market.
💡 Investor Takeaway: Desperate sellers create great buying opportunities.