NEW YORK, NY - Trepp, LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its August 2015 US CMBS Delinquency Infographic.
The Trepp CMBS Delinquency Rate increased three basis points in August, negating July’s rate improvement. The delinquency rate for US commercial real estate loans in CMBS is now 5.45%, down 30 basis points year-to-date. Compared to the year-ago level of 6.10%, the rate is down 65 basis points.
In August, $1.3 billion in CMBS loans became newly delinquent, bringing total delinquencies to $28.4 billion. About $425 million in loans were cured last month while loans that were previously delinquent but paid off either at par or with a loss totaled over $1 billion. “CMBS delinquencies continue to be range bound and we expect this to continue for the foreseeable future,” said Manus Clancy, Senior Managing Director at Trepp. “The oft-discussed ‘wave of maturities’ coming due could weigh unfavorably on the rate, but refinancing conditions remain encouraging, which should help keep delinquencies in check. The fact that the CMBS market stabilized late in the month is a sign of optimism for the rest of the year.”
The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased along with the overall delinquency rate. The rate of seriously delinquent loans rose six basis points to 5.28% in August. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 5.75%.
By property type, delinquencies increased for three of the five major sectors in August. Multifamily loans posted the largest month-over-month rate increase, jumping 23 basis points to 8.99%. The greatest improvement belonged to lodging, which remains the best-performing property type. Lodging’s delinquency rate shrunk 26 basis points in August to 3.44%.