AUGUST 5, 2014

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CMBS delinquency rate continues to drop, decline slowed

by Reg Clodfelter

For the 14th straight month, the delinquency rate for U.S. commercial real estate loans in CMBS declined, but the drop slowed to a crawl as July’s rate (6.04 percent) only beat out June’s (6.05 percent) by 1 basis point, according to data from Trepp.

Loan resolutions in July totaled slightly more than $600 million, one of the lowest totals in the past few years, and new delinquencies pushed the rate up by approximately 23 basis points. This left $32.1 billion in delinquent loans in the market, down from $32.4 billion in June (both numbers are excluding loans that are past their balloon date but current on interest payments).

Though the July performance was uninspiring, the delinquency rate has been performing well of late, having dropped 244 basis points from 12 months ago and 139 basis points from the start of 2014.

By property type, the delinquency rate of the lodging sector dropped 20

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