Hotel, office and retail properties that secure commercial mortgage-backed securities (CMBS) loans in the US will likely get worse before they get better, with recovery unlikely until 2011, industry analysts said. Respondents said they expect pressure on most major property types to continue in commercial real estate until 2010 at the earliest. Fitch Ratings, New York, said retail loan losses and defaults in US CMBS would likely trend upward for the next several years. Different options to maximize retail recoveries include marketing single-tenant spaces to non-traditional entertainment tenants, subdividing space to attract smaller tenants or selling back space to large mall operators for redevelopment, Fitch said.
Major CMBS assets face tougher times ahead Anonymous Mortgage Banking; May 2009; 69, 8; Docstoc pg. 106 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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