The rate of CMBS delinquencies, which has remained extremely low through the credit crisis, approximately doubled to 1.2% in last year's fourth quarter. A Deutsche Bank analyst projects the rate will hit 3% by the end of 2009. Although still low compared with
delinquency rates in residential mortgages, the rising CMBS delinquency rate signals serious problems for banks, which own nearly half of all commercial mortgage debt.

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