12.3.14: CMBS Delinquency Posts Significant Decline in November

The CMBS delinquency rate for U.S. commercial real estate loans in CMBS declined significantly in November, to 5.80%, reversing an 11-basis-point (bp) increase reported in October, according to Trepp. The November delinquency rate was the largest drop in ten months and the reading was the lowest level in five years.

Loans liquidated with losses totaled just over $700 million in November. Removing these resolved loans resulted in 13 bp of downward movement in the delinquency rate. Loans that cured reduced delinquencies by 22 bp, but this was mostly offset by loans that were newly delinquent. New delinquencies added about 18 bp to the delinquency rate.

U.S. CMBS Delinquency Rate:

Period % 30 Days or More Delinquent
Nov-14 5.80%
Oct-14 6.14
Sep-14 6.03
Aug-14 6.10
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 6.10%
6 Months Ago 6.27
12 Months Ago 7.30

Here are the numbers by property type:

  • The industrial delinquency rate dropped 20 bp to 7.49%.
  • The lodging delinquency rate broke the 5% barrier, falling 38 bp to 4.97%. Lodging remains the best performing major property type.
  • The multifamily delinquency rate saw the best month-over-month performance, sinking 97 bp to 8.83%. Apartment loans remain the worst performer among the major property types.
  • The office delinquency rate shed 27 bp to 6.21%.
  • The delinquency rate for retail loans sank 21 bp to 5.67%.
This entry was posted in CMBS, 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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