Commercial Mortgages Failing at 20-Year High

New York, NY, July 20, 2009--Commercial mortgages at U.S. banks are failing at the fastest rate in nearly 20 years, the Wall Street Journal said, reporting on its own analysis.

Losses on loans used to finance commercial spaces might reach about $30 billion by the end of 2009 at the current rate, the Journal said.

The estimated $30 billion is based on financial reports filed by more than 8,000 banks for the first quarter, the paper said.

The commercial real-estate market, valued at about $6.7 trillion, represents 13 percent of the U.S.'s gross domestic product, according to the paper.