CMBS Delinquency Rate Down in May

Jun 01, 2017

The delinquency rate for commercial real estate loans in commercial mortgage-backed securities (CMBS) fell by five basis points (bps) last month to 5.47 percent, according to new data from Trepp LLC. This decrease is something of a departure from recent activity, when the delinquency rate moved up in 12 of the last 14 months prior to May. However, the rate is now 112 bps higher than the year-ago level, and 24 bps higher year-to-date.

Approximately $1.7 billion in loans became newly delinquent in May, while about $1.15 billion in loans were cured. Roughly $735 million in CMBS loans that were previously delinquent were resolved with a loss or at par in May.

Among property types, multifamily delinquency rate climbed 16 basis points to 2.82 percent, and Trepp considered apartment loans to be the best performing major property type. The industrial sector saw the greatest delinquency rate increase, up 22 bps to 7.37 percent, while the office sector saw the greatest plummet, with its delinquency rate dropping 51 bps to 7.46 percent.

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Phil Hall

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Jun 01, 2017

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