In July, the delinquency rate for U.S. commercial real estate loans in CMBS dropped to 8.48%, a 17-basis-point drop since June’s reading and a 123-basis-point improvement since the start of 2013, according to Trepp.
The July 2013 level is the lowest Trepp delinquency rate since September 2010.
The fairly consistent improvement in CMBS delinquencies is down to the high levels of CMBS loan resolutions, said Trepp. Last month, $2.05 billion in loans resolved—up significantly from $1.25 billion in June and $858 million in May.
Also contributing to fewer delinquencies were $1.08 billion of loans that were cured during the month of July.
However, July saw $2.39 billion in newly delinquent loans, which measured almost twice the total posted in June.
Among the major property types, office and multifamily loans saw big improvements, each with over 40-basis-point declines.
“After a rough month for CMBS market in June—with rising interest rates and widening spreads—everyone was on tenterhooks about future issuance,” said Manus Clancy, senior managing director at Trepp. “July saw the return of stability and the forward looking calendar for new deals is full. This should bode well for continued improvement in the delinquency rate going forward.”
