Trepp LLC, a provider of information, analytics and technology to the commercial mortgage-backed securities (CMBS), commercial real estate and banking markets, has released its December 2011 U.S. CMBS Delinquency Report. The December delinquency rate for U.S. commercial real estate loans in CMBS rose seven basis points to 9.58 percent. After a positive November report that saw the delinquency rate fall 26 basis points, the rate reversed course and moved higher in December for the third time in the last four months and the eighth time in 2011. The value of delinquent loans is now $58.5 billion.
“We noted last month that further improvements would be hard to come by," said Manus Clancy, senior managing director of Trepp. "We view this as the first of a six- to 12-month stretch where the rate could increase by 75 basis points in aggregate. This will come as a result of the first wave of 2007 originated loans reaching their balloon dates over the next few months."
The multifamily delinquency rate fell 61 basis points in December, but remains the worst performing property type right now, at 15.57 percent. The lodging delinquency rate fell eight basis points to 12.20 percent and was the best performing property type year-over-year. Despite falling 17 basis points, the industrial delinquency rate finished the month at 12.03 percent and was the worst performing sector for 2011. The office delinquency rate rose 21 basis points to 8.97 percent and the retail delinquency rate increased 33 basis points in December, to 7.85 percent.