The rate of late payments on securitized commercial real estate loans has declined 12 months in a row. The only loan category to deteriorate last month was industrial.
Of all loans that are a part of commercial mortgage-backed securities, 6.27 percent were at least 30 days past due in May.
Trepp LLC reported the performance statistics.
The 30-day delinquency rate on CMBS loans improved from a month earlier, when it was 17 basis points higher.
CMBS delinquency has declined 280 BPS compared to the same month last year. In fact, delinquency has moved lower every month since May 2013.
“To borrow terminology from baseball, the Trepp CMBS delinquency rate ‘hit for the cycle’ in May when it reached the 12th consecutive month of delinquency improvement,” the ratings agency stated in the report.
Leading last month’s improvement were lodging loans, with the 30-day rate tumbling 61 BPS from April to 5.71 percent.
Delinquency on office property loans fell 22 BPS to 6.60 percent in May.
An 11-basis-point retreat from the prior report left retail property loan delinquency at 5.54 percent.
The 30-day rate on multifamily loans slipped 1 basis point to 9.82 percent in the latest period.
The only deterioration in May was experienced by industrial loans, with delinquency worsening by 25 BPS to 8.94 percent.
