CMBS data provider Trepp’s July 2012 payoff report showed that the percentage of loans paying off on their balloon date reached a 12-month low last month and was also at its lowest level since Oct. 2010.
Only 26.3% of the loans that reached their balloon date paid off in July while Oct. 2010’s was at 22.3%. July’s percentage is far below the 12-month average of 41.6%, according to Trepp.
By loan count, 53.3% of loans paid off in July. Also on the basis of loan count, the 12-month rolling average is now 52.2%.
Trepp added that the monthly payoff percentages were typically well above 70% before the economic crisis prior to 2008.
However, since the start of 2009, there have only been four months where more than half of the balance of loans reaching their balloon date was actually paid off.