The December delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities (CMBS) increased 7 basis points (bps) to 9.58% in December, according to new data released by Trepp LLC. The value of delinquent loans is now $58.5 billion.
The multifamily delinquency rate fell 61 bps in December, but remains the worst performing property type right now, at 15.57%. The lodging delinquency rate fell 8 bps to 12.2% and was the best performing property type year over year.
Despite falling 17 bps, the industrial delinquency rate finished the month at 12.03% and was the worst performing sector for 2011. The office delinquency rate rose 21 bps to 8.97%, and the retail delinquency rate increased 33 bps to 7.85%.
‘We noted last month that further improvements would be hard to come by,’ says Manus Clancy, senior managing director at Trepp. ‘We view this as the first of a six-to-12-month stretch where the rate could increase by 75 basis points in aggregate. This will come as a result of the first wave of 2007 originated loans reaching their balloon dates over the next few months.’