Commercial delinquency turned in a mixed performance last month. Overall delinquency on loans in commercial mortgage-backed securities climbed to a record high and defaults on industrial properties were more than 250 basis points worse. But loans secured by office and retail properties saw an improvement.
Late payments on securitized commercial mortgages were worse in January, rising to 9.01 percent from 8.79 percent in December, according to Moody’s Investors Service’s Delinquency Tracker. It was the first time ever that the rate exceeded 9 percent.
The data reflect all loans in conduit and fusion deals issued after 1997.
In January 2010, the rate of late payments was only 5.42 percent.
“Moody’s expects the delinquency rate to continue rising in 2011, but at a slower pace than it has over the past two years, reflecting early signs of a gradual turnaround in commercial real estate markets,” the report said.
Last month’s activity reflected $4.4 billion in newly delinquent loans and $3.6 billion in delinquent loans that were cured. After the dust settled, 4,052 loans for $55.7 billion remained delinquent in January.
Among property types, hotels had the highest rate of delinquency:Â 16.75 percent. Hotel lates were up 38 BPS from December.
Multifamily delinquency was 15.59 percent last month, up 121 BPS.
The 259-basis-point delinquency surge in loans secured by industrial properties was the worst of all property types. Industrial delinquency moved from 6.54 percent in December to 9.13 percent.
Next were retail properties, which saw delinquency fall for the first time in nearly a year to 7.27 percent from 7.44 percent.
Also lower was office property delinquency, which was lower for the third time in four months. The rate dropped 28 BPS to 6.43 percent.
