The percentage of commercial mortgage-backed security (CMBS) loans 30 or more days delinquent or in foreclosure or real estate owned (REO) status hit 8.02% at the end of April, according to Trepp's Monthly Delinquency Report. The delinquency rate is the highest in the report's history.
Trepp notes that the rate of loan deterioration is slowing compared to March, when the Stuyvesant Town loan drove up delinquencies by 89 basis points. Just one month after breaking the 7% threshold for the first time, the CMBS delinquency rate exceeded the 8% mark.
"While the modestly lower increase in the delinquency rate month to month may be reason for optimism, the percentage of loans seriously impaired remains sobering," the report says.
If defeased loans were taken out of the equation, the overall delinquency rate would be 8.58%, Trepp says.
Lodging delinquencies continued to increase last month, growing to 17.16% from 16.89% in March. Multifamily, which had the second-highest delinquency rate by property type, was the only major property type to show improvement in April (the 30+ day rate fell from 13.19% to 13.06% month over month).
Office delinquencies increased the most of any major property type, with a 64 basis-point increase.