JULY 7, 2016

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CMBS delinquency rate jumps in June

by Andrea Waitrovich

The Trepp CMBS Delinquency Rate moved noticeably higher in June, as the rate was pushed up by loans that reached their maturity date but were not paid off, according to Trepp.

It was the fourth straight month that the rate has crept higher following two large decreases in January and February. The delinquency rate for U.S. commercial real estate loans in CMBS is now 4.60 percent, an increase of 25 basis points from May. The rate is 85 basis points lower than the year-ago level and 57 basis points lower since the beginning of the year. However, the rate is now 45 basis points above its multi-year low of 4.15 percent, which was reached in February 2016. The all-time high was 10.34 percent in July 2012.

In June, CMBS loans that were previously delinquent but paid off with a loss or at par totaled almost $900 million. Removing these previously distressed assets from the numerator of the delinquency calculation helped move the rate down by 18 basis points. Over $50

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