The most recent indicators of the state of commercial real estate are, taken together, a mixed bag. Delinquencies and defaults tied to CMBS seem to be getting worse, but foreclosures on commercial real estate mortgages as a whole were remarkably low in April, about $65 million. The capital markets are warming to commercial real estate again, and the stronger REITs are gaining market value.
Officials at the Federal Reserve plan to wait until their policy meeting late this month and possibly longer to decide whether to extend purchases of assets, including Treasuries. Barclays Capital and other market participants urged more aggressive action, but it is unclear whether the Fed will oblige.