The national commercial foreclosure market peaked in May, at 752 total foreclosures that month. Prior to 2020, the peak in commercial foreclosures by month in the past decade was in October 2014, with 889.
In September, the delinquency rate of office loans converted into securities increased to 8.36%, the highest rate since November 2013.
KKR and Energy Capital Partners have agreed to invest a combined $50 billion in data-center and power-generation projects to support the development of artificial intelligence.
The vacancy rate is stabilizing at a near record level of 13.8%, up from 9.4% in the fourth quarter in 2019. Since the second quarter of 2020, U.S. office tenants have vacated close to 209 million square feet of space, the highest amount ever for a four-and-half-year period.
A lengthy stretch of scant new construction of retail real estate, combined with demand from expanding retailers, has reduced a longstanding property glut. Retail availability sits near record lows.
Median new-home prices were down on a monthly basis for much of the past year. The most recent decline of nearly 5% in August brought them to roughly $420,000. Prices for previously owned homes, meanwhile, have hit record highs.
Only 30% of the office loans worth more than $100 million that matured this year were paid back on time, with the rest either getting extensions or defaulting. By comparison, 70% of loans worth less than $10 million were paid back on time—a sign that lenders are much more comfortable issuing smaller mortgages for now.
Home insurance premiums for mortgage loans of more than $1.5 million jumped 130% between mid-2020 and mid-2024. For mortgages of between $400,000 and $800,000, home insurance premiums increased 12% over the same period.
The value of commercial real-estate loans in foreclosure nearly tripled between January and August this year to reach $19.2 billion.
