CMBS delinquency rate drops 17bps in August

The Trepp CMBS Delinquency Rate continued to fall in August, according to Trepp. The overall delinquency rate for U.S. commercial real estate loans in CMBS is now 3.64 percent, a decrease of 17 basis points from the July level.

The August 2018 rate is 180 basis points lower than the year-ago level and the rate was 4.51 percent six months ago. Year-to-date, the rate has dropped 125 basis points. The August reading breaks the previous post–financial crisis low of 3.81 percent set last month. The all-time high of 10.34 percent was registered in July 2012.

Delinquency rates for all major property types fell last month. July marked the first time in years that apartment loans were not the best-performing major property type as the hotel segment bested them. However, the lodging sector’s reign lasted all of one month because multifamily loans reclaimed the title in August. Multifamily slid 28 basis poi