Trepp: CMBS Delinquency Rate Jumps in March

(Image courtesy of Trepp)

Trepp, New York, reported the CMBS delinquency rate rose in March, with the overall delinquency rate up 35 basis points to 6.65%.

Year-over-year the rate is up 198 basis points.

The overall delinquent balance in the month was $39.3 billion, up from $36 billion in February.

The percentage of loans that are seriously delinquent–defined as 60-plus days delinquent, in foreclosure, REO or nonperforming balloons–is now 6.32%, up 41 basis points.

If Trepp included loans that are beyond their maturity date but current on interest, the delinquency rate would be 8.37%, up 19 basis points from February.

If defeased loans were taken out of the equation, the overall headline delinquency rate would be 6.86%, up 36 basis points from February.

The percentage of loans in the 30 days delinquent bucket is 0.33%, down six basis points from February.

The increase in the overall rate was driven in part by the multifamily sector, which is up 98 basis points to 5.44%. Multifamily has now climbed 360 basis points over the past year.

The lodging sector saw its rate jump 76 basis points to 7.19%. The industrial sector was up 26 basis points to 0.6%, and the retail sector was up 33 basis points to 7.82%.

The office sector fell two basis points to 9.76%.

The CMBS 2.0+ delinquency rate rose 36 basis points to 6.54%. The percentage of CMBS 2.0+ loans that are seriously delinquent is 6.21%, up 42 basis points from the previous month, and if defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 6.74%, up 34 basis points.