The rate of late payments on securitized commercial real estate loans fell to the lowest level in years, and performance on office property loans led the improvement.
Servicers of CRE loans included in commercial mortgage-backed securities turned in a stellar performance in November with a 30-day delinquency rate of 5.637 percent.
Delinquency, which has been lower for each of the last 12 months, was 5.852 percent in October — when it fell below 6 percent for the first time since January 2010.
CMBS performance has strengthened compared to November 2012, when the 30-day rate was 7.774 percent.
Morningstar Credit Ratings LLC reported the performance data based on $739.28 billion in CMBS it rates.
On the basis of dollar amount, $41.67 billion in CMBS were at least 30 days delinquent as of Nov. 30 — the lowest level since December 2009’s $41.6 billion.
Delinquent CMBS loans retreated from $43.18 billion a month earlier and tumbled from $55.2 billion a year earlier.
Securitized office property loans turned in the best performance, with the 30-day rate dropping 50 basis points from Oct. 31 to 8.10 percent.
Industrial loan performance followed, with the past-due rate declining 30 BPS to 10.8 percent in November.
A 10–basis-point decline from October left healthcare delinquency at 9.2 percent and multifamily delinquency at 3.2 percent.
The past-due rate on retail property loans was unchanged from the previous month at 6.0 percent.
Hotel loans were the only category to experience performance deterioration, with 30-day delinquency climbing 10 basis point to 6.5 percent as of the latest period.
