NEW YORK, NY - Trepp, LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its March 2014 US CMBS Delinquency Report.
The rate for US commercial real estate loans in CMBS fell 24 basis points in March to 6.54%. The last time the Trepp US CMBS delinquency rate was below this level was over four years ago, in January of 2010. Today's rate is 288 basis points lower than where it was a year ago.
Again, Trepp credits some of the month-over-month improvement to the ongoing CWCapital distressed asset sales. In the first three months of 2014 alone, the CMBS market saw 114 basis points of downward pressure on the delinquency rate due to previously delinquent loans being resolved with losses. While not all of these resolutions are a result of the CWCapital assets, they have contributed significantly to the rate's improvement.
"The CMBS market had the pleasure of singing the same happy refrain in March, as delinquencies continued to fall," said Manus Clancy, Senior Managing Director at Trepp. "We had anticipated a large drop in the rate due to the CWCapital assets, but that descent has been extended, as the notes didn't really begin to make it through remittance cycles until the New Year. We suspect the rate will stabilize somewhat in coming months."
New delinquencies totaled $1.7 billion in March, which was up from $1.3 billion in February. The total number of delinquent loans was down month-over-month, as there are now $34.6 billion delinquencies.
All five major property types improved in March. Retail dipped just six basis points but remains the best performing major property type. Multifamily saw a 13 basis-point improvement, but is still the worst performer among the group with the only double digit delinquency rate.
For additional details, such as delinquency status and historical comparisons, request the March 2014 US CMBS Delinquency report at www.trepp.com/knowledge/research