A big drop in late payments on securitized commercial real estate loans left the rate at a more than eight-year low. Hotel loans had the largest decrease.
October 2017 concluded with a 30-day rate of delinquency on loans that are included commercial mortgage-backed securities of 2.68 percent.
It turns out that October’s rate was the lowest delinquency rate for securitized CRE loans since May 2009, when
it was previously reported at 2.275 percent.
That was based on historical data from Morningstar Credit Ratings LLC, which reported the latest figures Thursday based on $809 billion in CMBS it rates.
CMBS delinquency was 2.94 percent in October and has moved lower each month since June, when it came in at 3.19 percent.
In October of last year, the rate was 3.03 percent.
“With steady new issuance volume pushing the outstanding balance of CMBS loans higher and special servicers actively resolving or liquidating assets, Morningstar Credit Ratings LLC believes the delinquency rate will hold below 3.0 percent after reaching an 18-month high of 3.19 percent in June,” the report stated.
The 30-day rate on securitized hotel loans was 3.01 percent, improving from September by 49 basis points — the best month-over-month improvement of any property type.
Industrial property CMBS loans saw a 40-basis-point decline to 4.89 percent in the latest report.
Retail property loans experienced a 25-basis-point drop to 6.12 percent as of October.
A 24-basis-point decline left October’s rate at 6.18 percent on securitized office building loans.
A 3-basis-point reduction from September put the rate on healthcare property CMBS loans at 2.05 percent
and the rate on multifamily loans at 0.42 percent.
