Wall Street Journal (08/13/08) P. C12; Hudson, Kris; Wei, Lingling; Frangos, Alex
Fitch Ratings' latest annual report shows that the average cash flow from commercial real estate is showing signs of declining for the first time in four years. Lower cash flow could trigger higher commercial mortgage defaults, which currently are hovering around levels of less than 1 percent. In particular, the nation's retail and multifamily housing sectors appear more vulnerable than the markets for hotel, office and industrial properties. Fitch researchers note that "a glut of" condominiums continue to enter the rental apartment markets, while retail properties are expected to remain under pressure from a weakening U.S. economy and the ongoing housing downturn.
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