- December 1, 2016: Vol. 28, Number 11

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U.S. CMBS delinquencies increase in October

by Jody Barhanovich

The U.S. CMBS delinquency rate inched up in October, according to Trepp. The delinquency rate for U.S. commercial real estate loans in CMBS is now 4.98 percent, an increase of 20 basis points from September.

The CMBS delinquency rate began to rise in March, as loans from the 2006 and 2007 vintages started to reach their maturity dates, which has caused the reading to move higher in seven of the past eight months. The percentage of seriously delinquent loans, which include 60-plus days delinquent, in foreclosure, REO, or nonperforming balloons, is now 4.87 percent, also up 20 basis points for the month.

The rate is now only 25 basis points lower than its October 2015 level. At one point this year, the rate was showing a year-over-year improvement of 143 basis points, but the delinquency reading is now 19 basis points lower than at the beginning of the year. The rate hit a multiyear low of 4.15 percent in February 2016. The all-time high was 10.34 percent in July 2012.

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