The rate of past-due payments on securitized commercial real estate loans has moved lower most months over the last three years — including last month.
Delinquency of at least 30 days on loans in commercial mortgage-backed securities was 4.15 percent in October.
The 30-day CMBS rate declined from the prior month, when delinquency came in at 4.21 percent.
Historical data from Morningstar Credit Ratings LLC, which reported the statistics, indicate that the rate has plummeted from the same month during the prior year, when it was 5.852 percent.
“As delinquency has fallen for 29 of the past 34 remittance cycles dating back to January 2012, Morningstar Credit Ratings LLC believes the declining trend will continue into 2015,” the report stated. “That said, Morningstar cautions that expectations regarding the delinquency headline figures should be considered within the context of the upcoming wave of maturing loans.”
The New York-based ratings agency estimated that $3.26 billion in performing CMBS loans are set to mature this month and next month. Next year, another $70.24 billion in CMBS loans are scheduled to mature.
The biggest improvement was made last month on industrial property loans, with 30-day delinquency declining 30 basis points from September to 6.6 percent.
A 20-basis-point drop left office loan delinquency at 5.8 percent as of October.
Retail property loan delinquency was off 10 BPS from September to 5.2 percent.
No change in the rate on health care property loans left past-due payments at 3.0 percent.
A 10-basis-point increase in delinquency from the previous month put the rate at 4.5 percent on hotel loans and at 2.6 percent for multifamily loans.
