July 20, 2009 / 8:44 AM / 8 years ago

Commercial mortgage failure at 20-year high in U.S.: report

(Reuters) - Commercial mortgages at U.S. banks have been failing at the fastest rate in nearly 20 years, the Wall Street Journal said, citing its own analysis.

<p>Pedestrians in downtown Boston, March 31, 2009. REUTERS/Brian Snyder</p>

Losses on loans used to finance commercial spaces would possibly reach about $30 billion by the end of 2009 at the current rate, the article 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.

Reporting by Nivedita Bhattacharjee in Bangalore; Editing by David Cowell

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