Trepp: CMBS Delinquency Rate Rises in December

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Trepp, New York, reported its CMBS delinquency rate grew in December, up four basis points to 7.3%.

In December, the overall delinquent balance fell by $264 million to $43.5 billion. The outstanding balance decreased $7.7 billion to $596.1 billion.

The balance of newly delinquent loans totaled just under $2.9 billion, and $3 billion cured over the same period, resulting in a net delinquency decrease of approximately $103 million.

If the report included loans that are beyond their maturity date but current on interest, the delinquency rate would be 8.75%, down six basis points from November.

The percentage of loan balance in the 30-days delinquent bucket is 0.3%, up four basis points from the previous month.

The percentage of loans that are seriously delinquent–60-plus days delinquent, in foreclosure, REO or non-performing balloons) is 7%, flat for the month.

If defeased loans were taken out of the equation, the overall headline delinquency rate would be 7.5%, up seven basis points.

The largest rate increase by property type was lodging, up 44 basis points to 6.61%. Industrial rose 13 basis points to 0.8%, and retail was up 18 basis points to 6.92%.

The office rate fell 37 basis points to 11.31%. While that’s the second consecutive decrease, it’s still running higher than the previous three Decembers.

Multifamily also fell, down 34 basis points to 6.64%.

The CMBS 2.0+ delinquency rate rose three basis points to 7.2% in December.