The delinquency rate for U.S. commercial mortgage-backed security (CMBS) loans saw its biggest monthly gain of the year in July, when it rose 51 basis points to 9.88%, Trepp LLC reports. The value of delinquent loans – which include loans that are at least 30 days delinquent, in foreclosure or in real estate owned status – stands just over $61.3 billion.
The 9.88% delinquency rate marks a new all-time high in U.S. CMBS delinquency, Trepp says.
"Much of the positive momentum that had been surrounding the CMBS market recently has now all but vanished in the past few weeks," says Manus Clancy, managing director of Trepp. "For the better part of the spring, the market was riding a wave of spread tightening, resulting in new issuance and falling delinquency levels. However, each of those positive reactions has taken a turn for the worse in the last two months."
The delinquency rates for the office, lodging and apartment sectors all rose sharply, gaining by 82, 117 and 46 basis points, respectively, in July.
Retail delinquencies increased by three basis points. With a 7.85% delinquency rate, retail remained the best-performing property type.
Industrial was the only major sector to improve, with its delinquency rate falling 59 basis points to 11.09%. The multifamily sector remained the worst-performing major property type, with a rate of 16.94%.
