Of the 26 largest metros, Cleveland and Detroit metros have the worst delinquency rate for commercial property loans, according to data compiled by Bloomberg.
Nearly 4% of mortgages for Cleveland and Detroit office buildings, shopping centers, warehouses and other commercial buildings were more than 60 days late. That’s almost 4 times the national average, according to Bloomberg.
Commercial vacancies are rising quickly as the economy worsens and many experts are predicting serious problems ahead. So far, New York City isn’t in Bloomberg’s top 5. But Manhattan landlords are already feeling the pinch and I would expect that in an extended recession, more and more of them will miss payments.
Rounding out the top 5 cities for commercial loan delinquencies:
3) Tampa: 2.9% of mortgage payments were late.
4) Pittsburgh: 2.7% of payments were late.
5) Riverside, Calif.: 2.6% of payments were late.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.