Companies seek new office buildings, shun ‘aging’ ones! This has led to an uptick in the default rate for CMBS backed by ‘buildings with large vacancies and insufficient cash flow to pay back their debt’! The default rate in December hit 2.53%, up from 1.81% in November. Compounding the problem is the fact that companies […]
As we approach the first Federal Reserve induced interest rate increase in about nine years, the impact on CMBS down the road will definitely bear watching! Given the way that the underwriting of commercial mortgage loans is done and the impact that an increase in rates might have on borrower credit quality, debt service coverage ratios […]
Federal Reserve Chairman Ben Bernanke Non-Taper September Surprise! The consensus in the financial markets leading up to the Fed announcement yesterday was that, at the very least, Federal Reserve Chairman Ben Bernanke would announce a drop in monthly bond purchases of a minimum of $10 billion from the current level of $85 billion. That didn’t […]
Introduction At Hallmark Abstract Service we attempt to provide clients with information they hopefully find timely and useful that they potentially may be able to share with their own clients. With that in mind, we wanted to offer an overview of commercial real estate mortgages and some of the issues surrounding what for many buyers is […]
