After deteriorating for five consecutive months, the rate of past-due payments on securitized commercial real estate loans has finally retreated.
Each month from March of this year through July, the 30-day delinquency rate on commercial mortgage-backed securities has moved higher.
But the deteriorating trend has now been broken, with the rate of 30-day CMBS delinquency moving lower as of August to
4.68 percent.
That is according to Trepp LLC.
The past-due rate was 4.76 percent a month earlier and
5.45 percent a year earlier.
CMBS delinquency had been as low as 4.15 percent in February 2016 and as high as 10.34 percent in July 2012.
The biggest month-over-month decline was with office building loans, with the rate plunging 20 basis points to 6.03 percent as of last month.
Thirty-day delinquency on securitized multifamily loans sank 13 BPS from July to 2.38
percent — the lowest rate of any property type.
CMBS loans secured by industrial property loans declined 6 BPS to 5.57 percent as of Aug. 31, 2016.
But a 3-basis-point increase from the previous month was recorded for delinquency on securitized lodging loans, which finished last month at 3.15 percent.
Thirty-day delinquency on retail property loans rose 5 BPS to 5.81 percent as of August.
