Strong Pulse for Boston's Commercial Real Estate Markets

April 11, 2010

Greater Boston's commercial real estate community appears to be among the healthiest in the country, in terms of the percentage of properties that have remained current on their debt payments. Currently, only 2.7 percent of the region's property loans packaged in commercial mortgage-backed securities (CMBS) were either delinquent or in various stages of foreclosure, according to real estate experts. As of January, there were roughly $800 billion in U.S.-based CMBS assets.

Greater Boston's commercial real estate community appears to be among the healthiest in the country, in terms of the percentage of properties that have remained current on their debt payments. Currently, only 2.7 percent of the region's property loans packaged in commercial mortgage-backed securities (CMBS) were either delinquent or in various stages of foreclosure, according to real estate experts. As of January, there were roughly $800 billion in U.S.-based CMBS assets. Approximately $46 billion—5.8 percent—of those securities were backed by delinquent loans, according to a RealPoint Research report.

Greater Boston also had one of the lowest percentages—14.6 percent—of CMBS loans on watchlists—that is, rosters of loans at risk of payment delinquencies. The Dallas-Fort Worth region has the country's highest percentage of CMBS loans on watchlists. The Phoenix-Mesa region has the country's highest percentage of problem CMBS loans considered delinquent or in a state of foreclosure. Watchlists are compiled by loan servicers in charge of collecting mortgage payments.

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