CMBS Delinquency Rate Up in November

The delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities (CMBS) reached the 5.03 percent level last month, according to new data from Trepp LLC. November’s CMBS delinquency level is up five basis points (bps) from October and is the highest level since December 2015, although it is 10 bps lower than November 2015 level and 14 bps lower than the level registered at the beginning of 2016.

Trepp also reported that CMBS loans that were previously delinquent but paid off with a loss or at par in November totaled about $800 million, while more than $700 million in loans were cured last month, which resulted in a 16 bps delinquency rate decline. But more than $1.1 billion in loans became newly delinquent in November, which added 25 bps to the delinquency rate.

Among the different commercial property segments, only the retail sector saw a delinquency rate decline in November, falling by a single basis point to 6.18 percent. The delinquency rates rose for the industrial sector (up 14 bps to 5.68 percent), lodging (up 20 bps to 3.63 percent) and multifamily (up nine bps to 2.50 percent).