Monthly delinquency on securitized commercial real estate loans fell to the lowest level since 2016, and office loans led the improvement. But hotel delinquency substantially deteriorated.
Thirty-day delinquency on loans that are part of commercial mortgage-backed securities was 4.83 percent as of Jan. 31 — the lowest rate
since it was 4.78 percent in September 2016.
CMBS delinquency declined from 4.89 percent in December 2017. It was the
seventh month in a row that 30-day delinquency on securitized CRE loans has moved lower.
Trepp LLC,
which released the data Wednesday, reported the rate at 5.18 percent as of Jan. 31, 2017.
“The delinquency level has receded consistently since June as most of the bubble-year loans from 2006 and 2007 have passed their maturity date and have been resolved,” the report said. “In other words, fewer loans from the bubble years are defaulting and those that did default are being resolved away (often with losses) at a decent clip.”
On securitized office building loans, this month’s rate was 5.84 percent, plunging from December by 56 basis points — the largest month-over-month decline of any property type.
The rate on securitized multifamily loans fell 28 BPS to 2.08 percent as of Jan. 31, 2018.
A 7-basis-point drop from year-end 2017 left the rate on
industrial property CMBS loans at 5.60 percent.
At 6.30 percent, the 30-day rate on securitized retail property loans
was 17 BPS higher than last month.
On hotel CMBS loans, delinquency soared 69 BPS
to 4.51 percent.
