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CMBS Delinquencies Tick Downward in January for Second-Lowest Rate of Pandemic
Running counter to the narrative that CMBS loans won’t be easy to refinance in the current higher-interest-rate environment and that delinquencies have nowhere to go but up, the CMBS delinquency rate has seen only de minimis increases over the past several months, Trepp reported. In January, it went in the opposite direction, declining by 10 basis points to 2.94%.
That is the second-lowest reading since the onset of the COVID-19 pandemic, according to Trepp, with only September 2022’s reading of 2.92% coming in lower. The percentage of loans in the 30-days- delinquent bucket is 0.12%, down four bps for the month, while the percentage of seriously delinquent loans is down six bps.
By property type, industrial posted January’s lowest CMBS delinquency rate at 0.40%, down two bps. Retail delinquencies were highest at 6.58%, although that figure represents a 39-bp decline from December 2022.
- ◦Financing
