Last month saw the single biggest drop the in U.S. commercial mortgage-backed securities (CMBS) delinquency rate in 14 months, according to new data from Trepp LLC.
Trepp reports that the delinquency rate for U.S. commercial real estate loans in CMBS fell 30 basis points (bps) to 9.69% in October. One year ago, the rate was 9.77%.
Loan resolutions remained high in October, with over $1.5 billion in loans resolved with losses. The removal of these loans from the delinquent loan category accounted for 28 bps of downward pressure on the delinquency rate.
Loans that were newly delinquent – around $2.6 billion in total – put upward pressure of about 46 bps on the rate, down from September's $3.3 billion of newly delinquent loans that contributed 59 bps of upward pressure. Loans that cured in October put downward pressure of 45 bps on the rate, essentially offsetting the amount of loans that became delinquent.
Among the major property types, only the multifamily segment weakened in October. Office, retail, lodging and industrial loans all saw improvements month-over-month.