Source: Trepp / #Finiance #Markets
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 2016 US CMBS Delinquency Report.
The Trepp CMBS Delinquency Rate increased seven basis points in March after plummets in January and February. The delinquency rate for US commercial real estate loans in CMBS is now 4.22%. The rate is 136 basis points lower than the year-ago level and the all-time high was 10.34% in July 2012.
In March, CMBS loans that were previously delinquent but paid off with a loss or at par totaled over $700 million. Removing these previously distressed assets from the numerator of the delinquency calculation helped move the rate down by 15 basis points. Over $600 million in loans were cured last month which dropped delinquencies by another 12 basis points. About $1.7 million in loans became newly delinquent, which put 33 basis points of upward pressure on the delinquency rate.
“Even with the small uptick in delinquencies this month, it was a good month for CMBS,” said Manus Clancy, Senior Managing Director at Trepp. “Spreads tightened considerably, new issues came to market well inside of where they were in February, and volatility subsided; all positive things for the market heading into the second quarter.
By major property type, delinquency rates increased for three of the five sectors in March. The office delinquency rate increased the most, escalating 25 basis points to 5.23%. The multifamily and retail sectors were the only to improve in March, dropping to 2.34 and 5.33, respectively. Apartment loans remain the best-performing major property sector.