In a report from Trepp, the data provider said that the delinquency rate for CMBS commercial real estate loans continued to rise in April, although the rate of increase slowed compared with March's accelerated pace.
The market was "taken by surprise" last month, according to the firm's publication TreppWire, when delinquencies increased 89 basis points. Around 40 basis points of that increase was a result of the massive Stuyvesant Town loan becoming delinquent. Despite this, the 49 basis point net rise was more than twice the increase posted in February.
In April, the percentage of loans that are 30 or more days delinquent, in foreclosure or REO rose significantly by 41 basis points, placing the overall delinquency rate at 8.02%.
While the modestly lower increase in the delinquency rate might be a cause for optimism, the percentage of loans seriously impaired remains sobering.
Overall, the percentage of loans seriously delinquent (60 days +, in foreclosure, REO, or non-performing balloons) jump 48 basis points is now over 7% for the first time
TreppWire published these figures:
Delinquencies hit the 8% level only a month after breaking the 7% level, rising 41 basis points.
The percent of loans 30 or more days delinquent or in foreclosure are the following: April: 8.02%; March: 7.61%; February: 6.72%.
Delinquency level of 8.02% is the highest in the CMBS market's history.
If defeased loans were taken out of the picture, the overall delinquency rate would be 8.58%.
The percentage of loans seriously delinquent (60+, in foreclosure, REO, or nonperforming balloons) at 7.14% or up 48 basis points.