CMBS Delinquency Rate at 14-Month High

The delinquency rate commercial real estate loans in commercial mortgage-backed securities (CMBS) reached the 5.23 percent level in December, an increase of 20 basis points from November and its highest level since October 2015, according to new data from Trepp LLP. One year ago, the delinquency rate was 5.17 percent, while six months ago it registered at 4.48 percent.

“The year began on an extremely positive note, as the delinquency rate fell 102 basis points over the first two months of the year,” said the latest Trepp CMBS Research Report. “At one point this year, the rate reflected a year-over-year improvement of 143 basis points. A large part of that decrease was due to the resolution of the $3 billion Stuyvesant Town/Peter Cooper Village loan. Since then, the rate has steadily climbed as loans from 2006 and 2007 have reached their maturity dates and have not been paid off via refinancing.”

Among the different sectors within commercial real estate, the industrial delinquency rate dropped six basis points to 5.62 percent from November to December, while the lodging delinquency rate fell six basis points to 3.57 percent. The multifamily delinquency rate increased 22 basis points to 2.72 percent, the office sector rose by 56 basis points to 7.13 percent and the delinquency rate for retail loans added 19 basis points to reach 6.37 percent.