The delinquency rate for commercial real estate loans increased for the fourth consecutive month and reached a new all-time high in June, according to Trepp LLC.
CMBS loans that are at least 30 or more days late in payment or in foreclosure jumped 12 basis points month-over-month to 10.16%, surpassing the previous record-high in May. Since February, the rate has risen by 79 basis points.
One year ago, the CMBS delinquency rate was 9.37%.
Through June, Trepp said 9.73% of the loans are seriously delinquent, meaning they have not been paid in over 60 days, are in foreclosure, REO or nonperforming balloons. This percentage is 22 basis points higher than the prior month.
Currently, $59 billion in CMBS loans are delinquent and $75.9 billion in loans are with the special servicer, Trepp said.
The New York-based analytic firm said most of the five-year loans originated in 2007 were made in the first six months of that year, which means their maturity dates will fall off sharply throughout the remainder of 2012.
“Driving the rate up has been the fact that only 28% of the loans from 2007 due to mature in 2012 managed to pay off in full,” said Manus Clancy, senior managing director at Trepp. “Investors should see some relief by September now that most of the 2007 loans coming due in 2012 have passed their maturity date, the delinquency rate should start to level off soon.”
Weak performance among lodging, office and retail loans attributed to the delinquency rate rising last month. The hotel delinquency rate surged 68 basis points from May and is now at 12.95%. Similarly, late payments for office loans was 19 basis points higher to 10.45%, while the retail delinquency rate increased 10 basis points to 8.17%.
The only major property type to improve in June was the industrial segment, which was down 128 basis points to 11.54%.
The multifamily delinquency rate ended the month unchanged at 15.17%, maintaining its position as the worst major property type.
According to Bloomberg, the total delinquency rate may increase 20 to 30 basic points during the second half of this year, which Standard & Poor's analyst, James Manzi, calls a "modest credit negative" for seasoned CMBS.