From John Johnson, CCIM - Atlanta, GA | Even though outstanding delinquencies on commercial mortgages bundled and sold as bonds jumped by almost 10% in March, MetLife is bullish on top quality CRE, and that the drop in prices for top shelf properties is over. Moody’s Investors Service says the current total of such delinquencies was over$42 Billion in March, but MetLife thinks that prices have bottomed.
MetLife Inc., the largest U.S. life insurer, said there are signs of a recovery in the commercial real estate market after property values dropped about 40 percent from their peak.
“We have seen a pick-up in office-leasing activity compared to last year, and hotel occupancies are starting to improve,” Chief Investment Officer Steven Kandarian said today in a conference call. “We believe commercial real-estate valuations have bottomed out.”
MetLife is benefitting from a rebound in its investment portfolio after posting three quarterly…
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Tags: bonds, commercial, Commercial Real Estate, cre, delinquencies, market, market reports, MetLife, Moody's, mortgages