Trepp: CMBS Delinquency Rate Increases in January, Office Hits New High

(Image courtesy of Mikhail Nilov/pexels.com)

Trepp, New York, reported the CMBS Delinquency Rate increased in January, up 17 basis points to 7.47%.

Year-over-year, it’s up 91 basis points.

January’s balance of newly delinquent loans is just under $5.4 billion; $2.6 billion of delinquent loans cured in the period and $1.1 billion of delinquent loans were paid off.

If Trepp included loans beyond their maturity rate but current on interest, the delinquency rate would be 9.14%, up 39 basis points from December.

If defeased loans were not included, the overall headline delinquency rate would be 7.66%, up 16 basis points from December.

The percentage of loans in the 30-days delinquent bucket is 0.38%, up eight basis points from the previous month.

The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO or non-performing balloons) is 7.09%, up nine basis points for the month.

Three of the five major property types saw increases to their delinquency rates.

Office rose 103 basis points to an all-time high of 12.34%. The previous high was 11.76%, reached in October. 

Multifamily was up 30 basis points to 6.94% and retail was up 12 basis points to 7.04%.

Lodging was down 105 basis points to 5.56% and industrial fell 18 basis points to 0.62%.

The CMBS 2.0+ delinquency rate rose 18 basis points to 7.38% in January.