CMBS data provider Trepp released its December 2011 U.S. CMBS Delinquency Report today.
The December delinquency rate for U.S. commercial real estate (CRE) loans backing CMBS increased seven basis points to 9.58%.
The results come after a positive November report that saw the delinquency rate dip 26 basis points, the rate reversed course and moved higher in December for the third time in the last four months and the eighth time in 2011.
The value of delinquent loans is currently at $58.5 billion, Trepp reported.
“We noted last month that further improvements would be hard to come by," said Manus Clancy, senior managing director of Trepp. "We view this as the first of a six to twelve month stretch where the rate could increase by 75 basis points in aggregate. This will come as a result of the first wave of 2007 originated loans reaching their balloon dates over the next few months."
The multifamily delinquency rate dipped 61 basis points in December. However, it currently remains as the worst-performing property type at 15.57%, Trepp noted.
The lodging delinquency rate fell 8 basis points to 12.20% and was the best-performing property type year over the year.
Despite falling 17 basis points, the industrial delinquency rate finished the month at 12.03% and was the worst-performing sector for 2011. The office delinquency rate rose 21 basis points to 8.97% and the retail delinquency rate rose 33 basis points in December to 7.85%, according to Trepp.