Trepp: CMBS Delinquency Rate Up; Office Hits High

(Image courtesy of Trepp)

Trepp, New York, reported that the CMBS delinquency rate rose in June, up 5 basis points to 7.13%.

Year-over-year, the overall U.S. CMBS delinquency rate is up 178 basis points.

In the month, the overall delinquent balance was $42.3 billion, down from $42.6 billion in May, and the outstanding balance was $593.4 billon, down from $601.6 billion in May. Trepp noted the main contributor to the rise in the headline rate was the reduction in the overall balance.

If the rate included loans that are beyond their maturity date but current on interest, the delinquency rate would be 8.71%, up 7 basis points from May.

The percentage of loans that are 30 days delinquent is 0.28%, down 21 basis points from May.

The percentage of loans that are seriously delinquent–defined as 60-plus days delinquent, in foreclosure, REO or non-performing balloons–is 6.85%, up 26 basis points for the month.

If defeased loans were taken out of the equation, the overall headline delinquency rate would be 7.32%, up 4 basis points from May.

The delinquency rate rose in four of the five main property types.

The office sector rate grew 49 basis points to 11.08%, hitting an all-time record. Previous peaks were 11.01% in in December and 10.7% in July 2012. 

Lodging delinquency grew 42 basis points to 6.81% in June.

Industrial rose 3 basis points, to 0.51%, and retail grew 7 basis points, to 7.06 %.

The only decrease was in multifamily, which fell 20 basis points to 5.91%.

The CMBS 2.0+ delinquency rate rose 3 basis points to 7.02%.