CMBS Delinquency Spikes
Commercial Observer
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The share of delinquent commercial mortgage-backed securities loans tied to office properties hit its highest level since 2018 in April. More grim details herein from a new report on the CMBS market. Meanwhile, in a sign of the shifting nature of both the office leasing market and its coworking niche, a major tech firm has moved out of a WeWork arrangement in Manhattan and into a direct lease.
— Tom Acitelli, Deputy Editor
Office CMBS Delinquency Reaches Highest Rate Since 2018: Report
The news continues to worsen for the nation’s troubled office sector. A new report from Moody’s Ratings found that national CMBS office loan delinquencies hit 6.4 percent in April, the highest monthly average since 2018, when many 10-year loans negatively impacted by the 2008 Global Financial Crisis were still being worked out upon maturity. Moreover, the office conduit/fusion CMBS refinance rate collapsed to 24 percent, after spending much of the last two years in the 50 percent range. The lack of repayments comes as the 10-year treasury rate hovers around 5 percent, one of its highest levels over the last 17 years.
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Tech Firm Palantir Moves From WeWork to Direct Deal at 620 Avenue of the Americas
Data analytics and intelligence firm Palantir Technologies is embracing life after WeWork at 620 Avenue of the Americas. Palantir inked a direct deal last month with landlord RXR to renew its 140,345 square feet at the landmarked Chelsea building, according to a source with knowledge of the deal and a market report by Colliers. A spokesperson for Palantir did not immediately respond to a request for comment. RXR declined to comment.
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