The delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities (CMBS) was 9.07% at the end of May – an increase of four basis points from April's 9.03%, the firm reports.
In April, the delinquency rate plummeted 47 basis points, the biggest single-month drop since Trepp began tracking the data in the fall of 2009.
The delinquency rate for March was 9.5%.
The resolution of distressed CMBS loans was a major factor in driving the delinquency rate lower in recent months, Trepp reports. However, loan resolutions dropped sharply in May, with only $858 million in loans resolved – roughly 46% less than the amount resolved in April.
The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure or REO, or non-performing balloons) is now 8.67%, down five basis points for the month, Trepp reports. With defeased loans removed from the equation, the overall 30-day delinquency rate for May is 9.4% – up one basis point from April.
Excluding loans that are past their balloon date but current on their interest payments, there is currently $49.75 billion in delinquent loans in the U.S.
One year ago, the U.S. CMBS delinquency rate was 10.04%, with 9.51% seriously delinquent. Six months ago it was 9.71%, with 9.24% seriously delinquent.
Perhaps not surprisingly, given the shrinking manufacturing base in the U.S., delinquencies on industrial properties in May climbed 91 basis points and is now 12.45%, making it the worst major property type.