The rate of past due payments on securitized commercial real estate loans moved down last month and is expected to improve even more by year end.
During May, the 30-day rate of delinquency on loans that are part of commercial mortgage-backed securities was 4.55 percent.
CMBS delinquency improved from April, when the 30-day rate was 4.59 percent.
The performance data was reported Friday by Morningstar Credit Ratings LLC based on the $747.53 billion in CMBS it rates.
The ratings agency noted that the CMBS delinquency rate has fallen 12 months in a row.
The late payment rate was also lower than May 2013, a month that saw delinquency at 6.71 percent.
Morningstar predicts that the CMBS delinquency rates will be “well below 4 percent” by the end of this year.
A 30-basis-point improvement from April in delinquency on loans secured by office properties was the biggest of any property type. The decline left the rate on office property loans at 6.1 percent.
A 20-basis-point drop left the May delinquency rate on both hotel loans and retail property loans at 5.0 percent.
Multifamily delinquency was 2.7 percent, 10 BPS lower than a month earlier.
Thirty-day delinquency on industrial property loans jumped 80 BPS from April to 8.6 percent.
The most deterioration was experienced on health care property loans, with the 30-day delinquency rate soaring 250 BPS to 9.7 percent last month.
