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- January 1, 2014: Vol. 26, Number 1

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CMBS delinquencies continue their decline

by Mike Consol

 

A confluence of economic factors — including GDP growth, lower vacancies, higher rents and low interest rates — have substantially improved the CMBS delinquency picture.

The upshot: For six consecutive months the CMBS delinquency rate has fallen, registering at 7.66 percent for November, down from 7.98 percent in October, according to figures tracked by Trepp. The rate has fallen 268 basis points since reaching an all-time high of 10.34 percent in the summer of 2012, the result of mounting real estate debt in the aftermath of the financial implosion.

A loan is classified as delinquent if a borrower is more than 30 days late on a mortgage payment.

In addition to the aforementioned improved economic measurements, renewed lending by banks and other lenders has allowed some building owners to refinance previously distressed properties.

One of the major concerns among interes

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