Commercial loan prices fall during July

Prices for commercial loans dropped in July.

A report from DebtX showed that commercial property managers experienced a slight loan price decline during July when compared to June's figure.

The total loan price level for collateralized commercial mortgage-backed securities fell to 88.3 percent in July, slightly lower than the previous month's figure of 88.4 percent, the report noted. The figure was still much higher than the loan value in July 2011, when it was 85.3 percent.

"Commercial real estate loan prices fell slightly in July after rising for seven straight months," said Will Mercer, managing director for DebtX. "The price decline was primarily due to an increase in the Treasury yield curve and a slight increase in credit spreads."

The report added that the total level of commercial real estate loans totaled more than 55,000, with a balance of nearly $770 billion.

Continued commercial real estate recovery should continue throughout the next year, though growth will level off slightly, according to the National Association of Realtors. However, the office, retail and industrial markets should have growth rates of more than 10 percent during that period.

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