CMBS delinquency rate decreases 19 bps in April

The Trepp CMBS Delinquency Rate resumed its decline after a brief timeout in March. The overall delinquency rate for U.S. commercial real estate loans in CMBS is now 4.36 percent, a decrease of 19 basis points from the March level.

The April 2018 rate is 116 basis points lower than the year-ago level. The reading hit a multi-year low of 4.15 percent in February 2016, and the all-time high of 10.34 percent occurred in July 2012. The rate is 53 basis points lower in the year to date.

Breaking it down by properties types, the industrial delinquency rate fell 78 basis points to 4.53 percent; lodging dropped 37 basis points to 2.98 percent; multifamily slid 13 basis points to 2.26 percent and remained the best performing major property type; office was down 23 basis points to 5.57 percent; and the retail delinquency reading inched 2 basis points lower to 5.97 percent.

Looking forward, Trepp recently noted that it felt the rate could potentially break the post-crisis low set in February 2016 at some point this year. Trepp said it stands by that prediction, as the rate is only 21 basis points away from its post-crisis nadir.