Despite deterioration in the performance of industrial property loans, multifamily mortgages and office property loans –overall delinquency on securitized commercial real estate loans improved last month.
Thirty-day delinquency on loans that are included in commercial mortgage-backed securities landed at 5.42 percent in July.
That worked out to a three-basis-point improvement over the previous month.
Compared to the same month last year, delinquency on securitized CRE loans has been reduced by 62 BPS.
Trepp LLC reported the loan performance data
based on the roughly $526 billion in CMBS it rates.
“The Trepp CMBS delinquency rate resumed its descent after a brief time-out in June … Over the last 27 months, the delinquency rate has fallen 23 times,” the ratings agency said.
The biggest improvement from June was made on lodging loans, with delinquency declining five BPS to 3.70 percent.
Also seeing a decline in delinquency were retail property loans, which had a three-basis-point improvement to 5.51 percent in July.
A three-basis-point up tick from June left last month’s 30-day rate at 5.93 percent on office property loans and 8.76 percent on multifamily loans.
The worst month-over-month performance was reported for industrial property
loans, with delinquency for that category surging 29 BPS to 7.41 percent in July.
