CMBS delinquency rate increases for first time in six months to 3.42% in October

In October, the Trepp CMBS Delinquency Rate took a timeout from its consistent improvement, according to Trepp. The overall rate inched higher after falling in six straight months and 14 of the past 15 months prior to October.

The overall delinquency rate for U.S. commercial real estate loans in CMBS is now 3.42 percent, an increase of 1 basis point from the September reading. The October 2018 rate is 179 basis points lower than the year-ago level. Year-to-date, the reading has fallen 147 basis points. The post-crisis low of 3.41 percent was set last month. The all-time high of 10.34 percent was registered in July 2012.

Breaking it down by property type, the industrial delinquency rate fell 17 basis points to 2.81 percent, while the lodging delinquency reading came down by 29 basis points to 1.98 percent. The multifamily delinquency rate dropped 7 basis points to 1.88 percent, and it remains the best-performing major property type. The office delinquency rate declined 1 basis point to 3.93 percent, and the retail delinquency rate increased 38 basis points to 5.39 percent. Retail remains the worst-performing major property type.