Two months after matching its lowest reading in a year, the delinquency rate for commercial mortgage-backed securities (CMBS) has reached its second highest reading of all time, according to new data from Trepp LLC.
Trepp reports that the delinquency rate for U.S. commercial real estate loans in CMBS jumped 12 basis points (bps) in April to 9.80%. The highest rate on record came in July 2011, when the rate topped out at 9.88%.
Over $1.4 billion in loss resolutions were reported in April. Trepp says that the removal of these loans from the delinquent-loan category attributed about 24 bps of downward pressure on the delinquency rate.
Loans that were newly delinquent – about $3.8 billion in total – put upward pressure on the rate of about 64 bps, while loans that were cured put downward pressure on the rate of 33 bps.
Trepp adds the increase in the delinquency rate was driven by a big increase in office loans: The office delinquency rate was up 82 bps to a new all-time high of 10.23%, the first time the office rate has ever hit double digits. The multifamily delinquency rate fell 21 bps, but remained the worst major property type, with a rate of 15.18%. Retail, industrial and hotel delinquency rates also fell in April.