The latest improvement in the performance of securitized commercial real estate loans left delinquency at the lowest level in a decade. Office loans were out front of the decline.
Delinquency of at least 30 days on loans that are included in commercial mortgage-backed securities concluded May 2018 at 4.12 percent.
That turned out to be the lowest rate of CMBS delinquency since May 2008 thanks to continued resolution of
distressed legacy debt and brisk new CMBS originations.
Trepp LLC reported the data Thursday.
CMBS delinquency was 4.36 percent the preceding month, while the rate was 5.47 percent during the same month in 2017.
Leading the month-over-month improvement were securitized office building loans, which saw a 55-basis-point plunge from April to 5.02 percent.
A 25-basis-point drop left May 2018’s rate at 5.72 percent on retail property RMBS loans.
Lodging CMBS loans saw a drop of 6 BPS to 2.92 percent.
An increase of 1 basis point put multifamily 30-day delinquency at 2.27 percent as of today.
The rate rose 16 BPS on securitized industrial property
loans to 4.69 percent.
