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).  






Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.