For the third month in a row, the rate of late payments on loans included in commercial mortgage-backed securities improved. Office loans led the decline.
Delinquency of at least 30 days on securitized commercial real estate loans worked out to 2.94 percent as of Sept. 30 of this year.
That turned out to be an 8-basis-point improvement compared to the
prior month and the lowest rate since it was 2.90 percent a year prior.
Morningstar Credit Ratings LLC reported the data Monday based on the $770 billion in CMBS it rates.
A month-over-month decline has been recorded each month since June 2017, when the rate was 3.19 percent.
Morningstar predicted that the rate will hold at less than 3.0 percent as the number of CMBS loans reaching maturity diminishes.
Delinquency on securitized office building loans was 6.42 percent, plunging from August by 36 basis points — more than any other property type.
At 6.37 percent last month, the rate of late payments on retail CMBS loans was down 8 BPS.
Multifamily delinquency dipped
3 BPS from August to 0.45 percent.
No change left delinquency of securitized healthcare loans at 2.08 percent as of Sept. 30.
Thirty-day delinquency on industrial property loans contained in CMBS worsened by 22 BPS from the preceding month to 5.29 percent.
A 23-basis-point increase left the past-due rate at 3.50 percent on securitized hotel loans.
