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CMBS Delinquency Rate Drops Again in August

The August delinquency rate for U.S. commercial real estate loans in CMBS dropped for the third straight month.

According to figures reported by Standard & Poor’s the delinquency rate for S&P rated CMBS fells to 8.84%. Trepp reported that the overall CMBS delinquency rate fell to 8.38%.

This represents a 10-basis-point drop since July’s reading and a 175-basis-point improvement from a year ago. The August 2013 level is the lowest Trepp delinquency rate in three years.

New delinquencies totaled $2.2 billion during the month compared with $1.3 billion in loan resolutions, according to S&P.  

“August saw a continuation of the year-long downward trend in the Trepp CMBS delinquency rate, which reached an all-time high of 10.34% just over 12 months ago,” said Manus Clancy, senior managing director at Trepp. “We anticipate this trend will carry forward in the months ahead as a new wave of expected deals will put additional downward pressure on the numbers.”

The total delinquent balance fell across all of the 5 major property types--office (-$1.3 billion, total $12.6 billion); retail (-$1.4 billion, $9.6 billion); multifamily (-$2.8 billion, $6.2 billion); industrial (-$0.6 billion, $1.8 billion); and lodging (-$1.4bn, $3.9 billion).  

 

 

 

 

 

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