The delinquency rate for commercial real estate loans rose 42 basis points to 8.42% in May — the highest in CMBS industry history, according to a report from Trepp released today.
The rate, which reflects loans 30 or more days delinquent, has been increasing between 37 and 49 basis points for seven of the past eight months, Trepp's report said.
In March and April, the figures stood at 8.02% and 7.61%, respectively. May’s percentage of loans 60 or more days in foreclosure, REO, or nonperforming balloons also increased 41 basis points to 7.55%, according to the report.
Lodging properties took the biggest hit, rising 129 basis points to 18.45%. The rate for multifamily properties followed closely with an increase of 28 basis points in May for a rate of 13.34% . Retail delinquencies stand at 6.86% (rising 42 basis points) and office delinquencies for the month showed a rate of 5.81% (up 44 basis points).
Industrial properties were the only type to experience a decrease in delinquency in May, Trepp said, falling to 5.34% from a 5.44% rate in April.
The CMBS delinquency rate one year ago was 2.77%, while six months ago it was at 5.65%, the report stated.