NEW YORK, NY - Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate, and banking markets, released its October 2013 US CMBS Delinquency Report.
For the first time since early 2010, the Trepp CMBS delinquency rate fell below the 8% level. October's decrease marks the fifth consecutive month of rate improvement. The rate dropped 16 basis points over the course of the month, bringing the 30+ day delinquency rate for US commercial real estate loans in CMBS to 7.98%. The percentage of loans seriously delinquent is now 7.69%.
"The government may have shut down this month, but special servicers took no time off," said Joe McBride, a Research Analyst at Trepp. "Almost $1 billion in CMBS loans were disposed with losses in October, as servicers continue to work through troubled loans, especially in the retail sector. Much of the improvement in the retail delinquency rate comes from this 'cleaning out' of the distressed pipeline."
While 2013 is almost over, Trepp expects to see more improvement in the rate before year-end. CWCapital's impending sale of more than $2.5 billion of distressed assets could result in a 50-basis-point decrease, assuming the sales close prior to the December remittance cycle.
"In addition to the distressed assets that were recently identified for sale, a large number of note sales are also expected from the servicer," said Manus Clancy, Senior Managing Director of Trepp. "As CW stated that it is looking to sell these before year-end, this could result in the removal of a number of loans from the delinquent category over the next 60 days."
For additional details, such as historical delinquency rates, delinquency status, and delinquency rates by major property type, request the October 2013 US CMBS Delinquency Report at Trepp.com
Source: Trepp / #RealEstate #Economy