Research - DECEMBER 29, 2014

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CMBS delinquency drops again in November

by Reg Clodfelter

CMBS delinquency dropped to 4.03 percent in November, down 13 basis points from the previous month and 564 basis points from one year ago, as the CMBS delinquency rate has now fallen for 30 of the past 35 remittance cycles dating back to January 2012, according to Morningstar Credit Ratings.

Delinquency has declined steadily from its 8.5 percent peak in May 2012 and has now remained below 5 percent for 10 consecutive months. Current percentage levels are equivalent to those seen in late 2009 (4.01 percent delinquent in October 2009), though at that time delinquencies were trending in the opposite direction than they are now.

The delinquent unpaid balance fell to $30.92 billion in November, down 3.5 percent from October and down a substantial 25.79 percent from $41.67 billion a year ago. The unpaid balance has been declining from more than $60 billion in mid-2012 and has now been under $40 billion for 12 consecutive months, and it is now at a low not seen since

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