In addition to retreating for six consecutive months, delinquency on securitized commercial real estate loans now stands at the lowest level in more than eight years. Retail loans led the latest drop.
Last year ended with a 30-day delinquency rate of 2.41 percent for loans packaged in commercial mortgage-backed securities — the lowest rate since it was 2.28 percent in May 2009.
CMBS delinquency was 2.54 percent as of Nov. 30, 2017, while the 30-day past-due rate was 3.00 percent at the conclusion of December 2016.
Morningstar Credit Ratings LLC reported the metrics based on the
$794 billion in CMBS it rates.
CMBS delinquency has improved each month since June 2017, when it was 3.19 percent.
“Morningstar Credit Ratings, LLC expects the delinquency rate to continue its descent in 2018, as servicers continue to wind down their legacy portfolios, originations outpace new problem loans, and we see fewer concerns for maturity,” the report said.
At 5.67 percent as of year-end 2017, delinquency on retail CMBS loans fell from November by 45 basis points — more than for any other property type.
The rate on on securitized healthcare property loans tumbled 28 BPS to 1.77 percent as of Dec. 31, 2017.
On hotel CMBS loans, delinquency sank 23 BPS from the previous month to 2.48 percent.
An 18-basis-point improvement left the 30-day rate on securitized industrial property loans at 4.44 percent as of the end of December.
Multifamily CMBS loan delinquency fell 13 BPS from November to 0.32 percent.
December’s 30-day rate on securitized office building loans dipped a basis point to 5.48 percent.
