The delinquency rate for US commercial real estate loans in CMBS decreased to 7.25%. According to a Trepp report, January’s rate decrease can be attributed to the resolution of almost $1.3 billion in previously delinquent loans. Previously delinquent loans that were resolved without losses totaled $163 million in January.
“By removing these delinquent loans from the numerator, the rate saw 24 basis points of improvement,” explained Trepp analysts in the report.
However, new delinquencies, which totaled about $1.8 billion in January, pushed the rate up by 32 basis points, according to Trepp. Around $1.3 billion in loans defeased last month.
“For the past few months we have noted that there would be significant gains in the near future,” said analysts in the report. “While that forecast has certainly proven accurate over the last 60 days, we still believe there is more room to run for the delinquency rate in the near-term. A rate below 7% could be a reality by early spring, especially as loan resolutions continue to remain very high.”