Commercial mortgage returns improve in 2012

Mortgage returns increased last year.

Property management companies experienced an improved level of mortgage returns in 2012 compared to the previous year.

The total level of mortgage loan returns rose 4.7 percent for life insurance companies and pension funds last year, according to the Gilberto-Levy Commercial Performance Index.

Total principal balance for the year reached $180.6 billion at the end of the year. This was markedly higher than the previous year's $178.7 billion, Commercial Property Executive reported, citing the report. New, permanent mortgages reached $25.6 billion last year, as well.

"The good news here is that the life company/pension fund activity is actually increasing and gaining market share in the overall commercial space," said Michael Giliberto, co-founder of the Giliberto-Levy Commercial Performance Index, according to the news source.

The significant figures were not the only good news for the commercial market in recent months. The delinquency rate for commercial mortgage-backed securities dropped to 9.42 percent during February, according to a report from Trepp. This was more than 90 basis points lower than the cyclical peak, recorded last summer, as well as 15 basis points less than in January.

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