The rate of past-due payments on securitized commercial real estate loans increased last month and is expected to worsen further this year.
Delinquency of at least 30 days on loans that are included in commercial mortgage-backed securities closed out last year at 3.00 percent.
The past-due CMBS rate worsened by 2 basis points from the end of November. But the rate has tumbled 43 BPS from the end of 2015.
Morningstar Credit Ratings LLC reported the latest metrics Thursday based on
the $796 billion in CMBS it rates.
The ratings agency said it “expects the delinquency rate to rise in 2017 because of a sharp increase in the volume of newly delinquent CMBS loans, many of which will default at or near maturity.”
The most deterioration was with securitized office building loans, which jumped 22 BPS from Nov. 30, 2016, to 6.24 percent.
Next were retail property loans, with the 30-day rate climbing 10 BPS to 5.78 percent as of year-end 2016.
A 9-basis-point increase from November left the rate on industrial property CMBS loans at 4.64 percent.
But 30-day delinquency on multifamily CMBS loans dipped a single basis point to 0.44 percent as of last month.
On CMBS loans secured by healthcare properties, the 30-day rate fell 23 BPS to 1.96 percent
Delinquency on securitized hotel loans fell 24 BPS from November to 2.99 percent.