Trepp: CMBS Delinquency Rate Increases for Sixth Straight Month

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Trepp, New York, released its CMBS Delinquency report for August, highlighting that the rate increased for the sixth consecutive month.

The rate stands at 7.29%, up six basis points from July. Year-over-year, it has increased by 185 basis points.

The overall delinquent balance in the month was $44.1 billion, up from $43.3 billion. The outstanding balance was $604.6 billion, up from $598.9 billion.

Newly delinquent loan balances were over $4.8 billion, and cured loans were $3.8 billion.

If Trepp included loans that are beyond their maturity date but current on interest, the delinquency rate would be 9.31%, down five basis points from July.

The percentage of loans that are in the 30-days-delinquent bucket is 0.41%. That’s up 11 basis points from July.

The percentage of loans that are seriously delinquent–defined as 60+ days delinquent, in foreclosure, REO or nonperforming balloons, was 6.88%, up five basis points for the month.

If defeased loans were taken out of the equation, the overall headline delinquency rate would be 7.48%, up seven basis points from July.

The multifamily and office rates both increased significantly, with multifamily up 71 basis points to a nine-year high of 6.86% and office up 62 basis points to an all-time high of 11.66%.

The retail delinquency rate fell, by 48 basis points to 6.42%.

Industrial grew by 8 basis points to 0.6%, and lodging fell five basis points to 6.54%.

The CMBS 2.0+ delinquency rate rose nine basis points to 7.2% in August.