CMBS delinquency rate reaches new post-crisis low in January at 3.02%

The Trepp CMBS Delinquency Rate opened 2019 on a positive note as the reading dropped again in January. The rate fell nine basis points from 3.11 percent in December 2018 to 3.02 percent in January, which represents a new post-crisis low. One year ago, the U.S. CMBS delinquency rate was 4.83 percent and six months ago, the U.S. CMBS delinquency rate was 3.81 percent.

The reading is down 181 basis points year-over-year. The delinquency rate started to improve consistently after the June 2017 report when CMBS delinquencies clocked in at 5.75 percent. Since then, the rate has fallen in 17 of the past 19 months. The all-time high of 10.34 percent was registered in July 2012.

Breaking it down by property type, the lodging delinquency reading inched up two basis points to 1.53 percent and remains the best-performing major property type. The industrial delinquency rate fell 34 basis points to 2.05 percent, while multifamily inched one basis point lower to 1.97 percent. The office delinquency rate moved up two basis points to 3.47 percent, and retail declined 29 basis points to 4.92 percent. Retail remains the worst-performing major property type.