Trepp: CMBS Delinquency Rate Ticks Up in May

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Trepp, New York, reported the CMBS delinquency rate increased by one basis point to 7.55% in May.

One year ago, the overall U.S. CMBS delinquency rate was 7.08%.

If loans past their maturity date but current on interest (performing matured balloon) were included, the delinquency rate would be 9.17%, up 11 basis points from the previous month.

The seriously delinquent rate–60-plus days delinquent, in foreclosure, REO or non-performing balloons–also increased, up to 7.3%.

The percentage of loan balance in the 30-day delinquent bucket is 0.25%, a decrease of two basis points from April (0.27%.)

If defeased loans were taken out of the equation, the overall headline delinquency rate would be 7.73%, up one basis point from April.

Industrial saw the largest increase, up 35 basis points to 1.31%. That spike was driven by several newly delinquent manufacturing and logistics delinquencies. Retail is up 30 basis points to 6.61%.

Other categories fell–with multifamily’s rate dropping 76 basis points to 6.95%. Office fell 16 basis points to 11.53% and lodging fell 51 basis points to 6.01%.

The five largest newly delinquent loans accounted for $1.86 billion of the $4.04 billion in newly delinquent loans. Non-performing matured balloon loans dominated the newly delinquent loan list.

The CMBS 2.0+ delinquency rate also rose one basis point to 7.46% in May.