The delinquency rate for U.S. commercial real estate loans in commercial mortgage-backed securities (CMBS) fell 21 basis points (bps) to 10.13% in August, according to new data from Trepp LLC. This was the largest one-month drop in the CMBS delinquency rate since November 2011.
Trepp reports that almost $1.5 billion in loans were resolved in August with losses. The removal of these loans from the delinquent loan category accounted for about 26 bps of downward pressure on the delinquency rate.
Loans that were newly delinquent – around $3.3 billion in total – put upward pressure of about 57 bps on the rate. This was a sharp decline from July, when newly delinquent loans resulted in an increase of 81 bps ($4.6 billion). Loans that cured – about $2.8 billion – put downward pressure of 48 bps on the rate in August.
The percentage of loans considered seriously delinquent was 9.57% in August, down 23 bps for the month. Trepp reports that there were almost 4,000 loans totaling $72.4 billion with a special servicer. Among the major property types, Trepp found improvement in the multifamily, lodging and office segments.