8.15.14: CMBS Delinquency Posts Small Decline in July

The CMBS delinquency rate for U.S. commercial real estate loans in CMBS declined a fraction in July, to 6.04%, barely extending a 14-month month-over-month decline, according to Trepp. Loan resolutions totaled just over $600 million, one of the lowest monthly totals in recent years. Removing these resolved loans resulted in 11 basis points (bp) of downward movement in the delinquency rate. Loans that cured reduced delinquencies by 13 bp, but this was more than offset by loans that were newly delinquent. New delinquencies added about 23 bp to the delinquency rate.

U.S. CMBS Delinquency Rate:

 Period   % 30 Days
or More Delinquent
Jul-14 6.04%
Jun-14 6.05%
May-14 6.27%
Apr-14 6.44%
Mar-14 6.54%
Feb-14 6.78%
Jan-14 7.25%
3 Months Ago 6.44%
6 Months Ago 7.25%
12 Months Ago 8.48%

Here are the numbers by property type:

  • The industrial delinquency rate saw the biggest month-over-month improvement in July. It fell 50 bp to 7.89%.
  • The lodging delinquency rate shed 20 bp and is now 5.19%. Lodging has surpassed retail as the best performing major property type.
  • The multifamily delinquency rate dropped 15 bp to 9.24%. Apartment loans are still the worst performer among the major property types.
  • The office delinquency rate inched up 8 bp to 6.52%.
  • The delinquency rate for retail loans increased 10 bp to 5.53%.


This entry was posted in CMBS, CMBS Securities, Commercial Mortgage-Backed Securities, Michael D. Sneden, News & Recent Closings, The Banker's Mortgage Conduit, Valuexpress and tagged , , , . Bookmark the permalink.

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