CMBS Delinquency Rate Closes 2018 at 3.11 Percent

CMBS Delinquency Rate Closes 2018 at 3.11 Percent

January 3, 2019
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The delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities (CMBS) ended 2018 in a downward motion, according to data from Trepp LLC.
The December CMBS delinquency rate was 3.11 percent, down from 3.33 percent in November. One year ago, the rate was 4.89 percent. In total, the rate dropped 178 basis points during the course of 2018.
Trepp noted that the CMBS delinquency rate started to fall after June 2017 when it registered 5.75 percent. Since then, it has dropped for 16 of the last 18 months.
Among the sectors within commercial real estate, the industrial delinquency rate closed 2018 at 2.39 percent, representing the largest year-over-year improvement among property types. The lodging delinquency rate was 1.51 percent, and Trepp praised lodging as the best performing property type within commercial real estate for December. The multifamily delinquency rate came in at 1.98 percent, the office delinquency rate reached 3.45 percent, and the retail delinquency rate closed the year at 5.21 percent—with Trepp naming retail as the the worst performing property type for the month.