After worsening for several months in a row, the past-due rate on securitized commercial real estate loans moved lower. Office building loans drove the decline.
Loans that are included in commercial mortgage-backed securities had a 30-day delinquency rate of 3.09 percent as of May 31, 2017.
The ratio of past-due CMBS payments improved from 3.14 percent the preceding month — when delinquency had been up five consecutive months.
Morningstar Credit Ratings LLC reported the performance data.
In May 2016, 30-day CMBS delinquency stood at 2.91 percent.
“We believe the delinquency rate is close to peaking as there’s not much left that we expect to default at maturity, resolutions remain high, and issuance is starting to pick up,” the report stated.
The 30-day rate on securitized office building loans was 6.60 percent as of the end of last month, improving from April by 60 basis points — the largest month-over-month decline of any property type.
At 2.03 percent, May 2017’s past-due rate on healthcare property CMBS loans was a basis point lower than a month earlier.
Moving the other direction was securitized multifamily loan delinquency, which inched up 4 BPS to 0.46 percent.
A 6-basis-point rise in industrial property loan delinquency left last month’s rate at 5.69 percent.
The rate on hotel CMBS loans was 3.31 percent, rising 14 BPS from April 30.
Delinquency on securitized retail property loans jumped 43 BPS to 6.34 percent.
