NEW YORK. NY - Trepp, LLC, a leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its March 2017 US CMBS Delinquency Report.
The Trepp CMBS Delinquency Rate moved higher again in March, as loans from 2006 and 2007 continue to reach their maturity dates without being paid off via refinancing. The delinquency rate for US commercial real estate loans in CMBS is now 5.37%, up six basis points from February. This is the eleventh monthly rate increase in the past 13 periods. The delinquency rate is now 115 basis points higher than the year-ago level.
Nearly $2.0 billion in CMBS loans became newly delinquent in March, as the total was once again the leading driver for the heightened rate. About $1.1 billion in CMBS loans that were previously delinquent paid off with a loss or at par last month. Over $500 million in loans were cured in March, though that figure is down by about $350 million month-over-month.
“With more and more loans turning delinquent after their maturity dates, another monthly increase in the CMBS delinquency rate has become par for the course,” said Manus Clancy, Senior Managing Director at Trepp. “This will not last forever, but there is so much debt coming due in the immediate future that cannot be refinanced via CMBS because not many loans are making their way into new deals.”
Delinquency rates for three of the five major property sectors rose in March, including the industrial segment, as that reading ascended 109 basis points to 7.03%. The lodging and office rates each increased 27 basis points to 3.70% and 7.38%, respectively. The multifamily delinquency reading shed 22 basis points to 2.60% last month, as that sector remains the best performing major property type.
For additional details, such as delinquency status and historical comparisons, download the March 2017 US CMBS Delinquency Report at Trepp.com.