CMBS Delinquency Rate Up in July

The delinquency rate for commercial mortgage-backed securities (CMBS) increased 16 basis points (bps) to 4.76 percent in July, according to new data from Trepp LLC. July was the fifth consecutive months that the CMBS delinquency rate grew higher, although it is 66 bps lower than a year ago and 41 bps below the level set at the start of 2016.

Last month, the percentage of loans seriously delinquent reached 4.67 percent, up 19 bps for the month. Without incorporating defeased loans into the data, the overall 30-day delinquency rate would be 4.97 percent, a 16 bps increase over June.

Among different commercial property sectors, the delinquency rate rose in the multifamily market (up 16 bps to 2.51 percent), the office market (up 47 bps to 6.23 percent) and the retail market (up four bps to 5.76 percent). The delinquency rate fell for the industrial market (down 23 bps to 5.63 percent) and the lodging market (down 15 bps to 3.12 percent).