One good way to track CMBS loan losses is to follow appraisal reduction amounts (ARAs).

So Kroll Bond Rating Agency's recent numbers can be telling.

Kroll reported that 409 ARAs had been effectuated year-to-date through November 2020 on CMBS 2.0 conduit transactions. For full-year 2019, there were 111 ARAs. Overall, 2020's number was 3.7 times higher.

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Leslie Shaver

Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to and Real Estate Forum.