Late payments on U.S. commercial mortgage-backeds fell monthly by another five basis points in December to end the year 5.75%, according to Trepp.

Over the course of the year, delinquencies declined by 168 basis points from 7.43% at the end of 2013. The delinquency rate for U.S. commercial real estate loans in CMBS is now the lowest since November of 2009. 

Lodging properties saw the biggest year-over-year improvement. The delinquency rate for hotel loans fell 314 basis points during 2014. The retail sector saw the smallest improvement among the property types, dropping just 40 basis points over the course of the year. The delinquency rates for industrial, office, and multifamily loans improved by 291, 205, and 201 basis points, respectively.

In the month of December, almost $1 billion in loans became newly delinquent. However, nearly $700 million of CMBS loans were liquidated, while another $700 million in loans were cured.

“2014 was another great year in terms of seeing the delinquency rate fall,” said Manus Clancy, senior managing director at Trepp, in a press release. “Special servicers resolving delinquent loans certainly had a lot to do with that, but low interest rates, tight CMBS spreads, and plenty of funding sources also helped.”


Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.