Shale Drilling’s Positive Effect on OH Commercial Real Estate
The numbers in Ohio show that the Utica and Marcellus Shale drilling boom is already having a positive affect on the commercial real estate market. Late payments for commercial mortgages and loan delinquency rates have dropped, significantly, in just the past year.
Ohio, which in December had the nation’s seventh-highest commercial property delinquency rate, according to Moody’s Investors Service, is already showing signs of improvement. The delinquency rate on commercial mortgages packaged and sold as bonds in Ohio dropped to 8.74 percent in June from 11.28 percent a year earlier, according to data compiled by Bloomberg.
Late payments for commercial loans in Youngstown, about halfway between Cleveland and Pittsburgh, declined to 5.69 percent in June from 7.75 percent a year earlier.*
*Charleston (WV) Daily Mail (Jun 17, 2012) – Fracking boon for Ohio real estate