It’s been more than a year-and-a-half since the late payment rate on securitized commercial real estate loans was as high as it was last month.
The rate of 30-day delinquency
on loans that are contained in commercial mortgage-backed securities closed out March 2017 at 5.37 percent.
That turned out to be 6 basis points worse than the prior month, the second month in a row that the rate rose and the highest rate since August 2015’s 5.45 percent.
Trepp LLC reported the performance metrics on Tuesday.
CMBS delinquency was 4.22 percent in March 2016.
“Late last year, we noted that ‘it is hard to see the rate going down anytime in the near future,'” Trepp stated. “We still believe that trend will continue until the summer as the ‘wall of maturities’ plays out.
“The rate should begin to level off or retreat later in 2017.”
The report indicated that the 30-day rate on securitized industrial property loans was 7.03 percent last month, soaring from February by 109 BPS — more than any other property type.
A 27-basis-point increase left lodging delinquency at 3.70 percent as of March 31.
Delinquency on retail
CMBS loans was 6.12 percent at the close of the most-recent month, climbing 19 BPS on a month-over-month basis.
However, the 30-day rate on multifamily loans tumbled 22 BPS to 2.60 percent.
Securitized office building loans saw delinquency sink 27 BPS to 7.38 percent at the end of March — the best improvement of any property type.
