CMBS delinquency rate decreases 24 bps in May

Thanks to the continued resolution of distressed legacy debt and the brisk pace of new loans being originated and securitized, the overall Trepp CMBS Delinquency Rate hit its lowest level since the 2008 financial crisis in May. The overall delinquency rate for U.S. commercial real estate loans in CMBS is now 4.12 percent, a decrease of 24 basis points from the April level.

The May 2018 rate is 135 basis points lower than the year-ago level. The May reading breaks the previous post-crisis low of 4.15 percent in February 2016. The all-time high of 10.34 percent was registered in July 2012.

Breaking it down by property type, industrial increased 16 basis points to 4.69 percent; lodging fell 6 basis points to 2.92 percent; office slid 55 basis points to 5.02 percent; retail dropped 25 basis points to 5.72 percent; and multifamily inched up 1 basis point to 2.27 percent and remains the best-pe