Research - AUGUST 4, 2015

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CMBS delinquency inches down in July

by Zoë Wolff

The CMBS delinquency rate dropped 3 basis points to 5.42 percent in July, after a brief rise in June, according to Trepp. It is now 62 basis points lower than the year-ago level and 33 basis point lower year-to-date. During the past 27 months, the delinquency rate has fallen 23 times.

There were $1.4 billion of newly delinquent loans in July, while $800 million in previously delinquent loans were paid off at par or with a loss,and approximately $600 million in loans cured. The percentage of seriously delinquent loans dropped 10 basis points to 5.22 percent. There are currently $28.5 billion in delinquent loans.

The industrial delinquency rate had the greatest rise — after the most significant drop in June — increasing 29 basis points to 7.41 percent. The multifamily delinquency rate continued to rise, gaining 3 basis points to 8.76 percent in July, and office rose 3 basis points to 5.93 percent, while retail dropped 3 basis points to 5.51 percent.

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