In May, the delinquency rate on U.S. CMBS loans fell four basis points to 9.18%.
According to the Moody's Investors Service's Delinquency Tracker (DQT), the total balance of delinquent loans stayed at $56 billion, with $3.4 billion worth of loans becoming newly delinquent in May and $4.1 billion worth of loans becoming current, worked out, or disposed of over the month.
The specially serviced loans rate fell ten basis points to 12.62% in May. As a result, the volume of specially serviced loans remains approximately 3.5% higher than the volume of delinquent loans for the month, the rating agency reported.
Of the five major property types, two delinquency rates continued to rise and three declined.
The industrial sector had the largest increase in May, rising 93 basis points to 11.16% for a total of 587 basis points over the last year. Multifamily saw the second biggest monthly increase of 41 basis points for an overall rate of 15.76%.
As stated in the Moody's report, the retail sector had the largest decline of 31 basis points, settling at 7.31%. The office and hotel sectors both experienced a modest decline, falling two and three basis points, respectively, to 6.87%, and 16.35%.
Of the four geographical regions, two had slight increases while two had noticeable decreases. Despite rising two basis points to an individual high of 7.22%, the East continued to be the best overall performer. The Midwest also saw an increase of four basis points in May, reaching 9.24%.
The South and West both saw declines of 41 and 21 basis points respectively, falling to 10.71% and 9.16%.
The total number of delinquent loans fell from 4,047 in April to 4,017 in May.