The performance of securitized commercial mortgages improved slightly last month, according to Fitch, while Trepp reports little change in delinquency for September. The 60-day delinquency rate for commercial mortgage backed securities (CMBS) loans finished September at 8.6%, according to Fitch, down 5 basis points (bp) from a month earlier and 41 bp from its peak of 9.01% on July 31, 2011. The late-payment rate has averaged 8.7% over the first nine months of the year.
After two very sharp moves over the last two months — a huge jump in July and a big dip in August — CMBS delinquencies stabilized in September, according to Trepp. For at least one month, the reading reverted to its pattern from earlier in the year when modest bumps in the rate were the norm. In September, the delinquency rate for U.S. commercial real estate loans in CMBS inched up 4 bp to 9.56%. The CMBS market has now seen its delinquency rate fall in three of the last five months.
Trepp notes that for the month of September hotel delinquency rate fell while other major property types increased; multifamily remained the worst performer. Below is a summary of the delinquency rates by asset class:
- Hotel delinquency rate down 46 bp to 13.30%;
- Office delinquency rate up 12 bp to 8.29%;
- Industrial delinquency rate jumps 14 bp to 11.38%;
- Multifamily delinquency rate increases 52 bp and remains worst major property type at 16.96%; and
- Retail delinquency rate increases to 7.62% — up 24 bp — remaining the best performing major property type.