After more than a year of month-over-month declines, the past due rate on securitized commercial real estate loans worsened last month.
The 30-day delinquency rate on loans included in commercial mortgage-backed securities was 6.10 percent in August.
CMBS delinquency deteriorated from the previous month, when the 30-day rate was 6.04 percent.
The metrics were based on CMBS rated by Trepp LLC.
Prior to last month, delinquency had moved lower for 14 consecutive months, according to the New York-based ratings agency.
Performance has improved, however, from the same month during the previous year, when the 30-day rate was 8.38 percent.
Moving up the most was delinquency on industrial property loans, climbing 50 basis points from July to 8.39 percent.
An 18-basis-point increase left the 30-day rate on lodging loans at 5.37 percent.
Delinquency on retail property loans jumped 16 BPS to 5.69 percent last month. Trepp noted that a big retail property loan defaulted last month.
“The largest newly delinquent loan was the $240 million Westfield Centro Portfolio, which makes up 7.8 percent of the collateral behind JPMCC 2006-LDP7,” the report stated. “The five-property note, backed by 2.4 million square feet of retail space, became delinquent for the first time in August.
“This note alone put almost five basis points of upward pressure on the delinquency rate.”
At 6.61 percent in August, the 30-day rate on office property loans was 9 BPS worse than during the prior month.
The only improvement in CRE loan performance was with multifamily loans. Multifamily delinquency declined 15 BPS to 9.09 percent.
