Rash of Foreclosures in US Fail to Impact Shopping Centers

Posted On Friday, 29 February 2008 02:00 Published by
Rate this item
(0 votes)
Analysts of retail real estate have been expecting shopping centers in areas with the highest number of home foreclosures to be the most vulnerable to the slowing economy

But the correlation between foreclosure volume and retail-property loan delinquencies is weak.

Take the Detroit area, for example. It is the top market for home foreclosures, according to RealtyTrac Inc. It had just a 0.48% delinquency rate on commercial loans on its retail properties, according to data and analytics provider Trepp LLC. While that is above the national average of 0.14%, it is still way behind other markets.
 
The next three highest-ranked markets for home foreclosures -- Stockton, Calif.; Las Vegas; and Riverside, Calif. -- posted no delinquencies on retail loans. The highest delinquency rates among the top 100 foreclosure markets were No. 18 Indianapolis at 1.99% and No. 84 New Orleans at 1.96%.

This means that delinquencies on commercial loans for retail properties are episodic and widely dispersed. "People were saying that subprime [foreclosures] would kick in and retailers would be punished with less traffic and you'd see defaults," says Manus Clancy, a senior managing director at Trepp. "Our conclusion is that, if you believe that thesis, it's going to play out much more slowly than the subprime [implosion] did."


Publisher: The Wall Street Journal Online
Source: realestatejournal.com

Most Popular

Anuva Investments launch Section 12J hospitality fund with property partners Flyt Property Investment

Oct 18, 2019
Zane De Decker HR
Investment into Section 12J venture capital vehicles has seen a huge uptake over the last…

Fairvest to become fourth property company to list on A2X

Oct 30, 2019
DARREN WILDER
Fairvest Property Holdings, a real estate investment trust with a market cap of R2…

Property market ready for take-off as bond grants rise

Oct 18, 2019
BetterBonds Mortgage Monitor
Housing demand has continued to gain momentum since the start of the year and in the…

Significant shifts in the Winelands commercial sector

Oct 18, 2019
Caption Somerset West commercial
A decade of corporate semigration and decentralisation fuelled the Winelands commercial…

Equites Property Fund Interim Results

Oct 18, 2019
Andrea Taverna Turisan CEO Equites Property Fund
Equites Property Fund Limited (Equites) today announced distributable earnings for the…

Please publish modules in offcanvas position.