The rate of past due payments on securitized commercial real estate loans retreated to its lowest level since 2016 and could go lower. Retail properties improved most.
Last year concluded with the rate of 30-day delinquency on loans that are included in commercial mortgage-backed securities coming in at 4.89 percent.
That wound up being the lowest CMBS delinquency rate since September 2016, when the 30-day rate was previously reported at 4.78 percent.
Last month’s metrics were reported by Trepp LLC.
“In the beginning of the summer, we noted that further rate declines were possible in the following months as the wall of maturities passed,” Trepp said. “Delinquencies have now fallen in each of the last six months, and further reductions could be in the cards for 2018.”
CMBS delinquency was 5.18 percent a month earlier and 5.23 percent a year earlier.
Delinquency on securitized retail loans ended last month at 6.13 percent, plummeting from November by 66 basis points — the largest month-over-month improvement of any property type.
A 43-basis-point drop left the rate on industrial CMBS loans at 5.67 percent as of Dec. 31, 2017.
At 2.36 percent, securitized multifamily loan delinquency
decreased 35 BPS from the preceding month.
Office building loan delinquency fell 10 BPS to 6.40 percent as of year-end 2017.
The only category to see deterioration was lodging, with hotel CMBS loans climbing 19 BPS to 3.82 percent.
