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CMBS Delinquencies Decline Sharply in October
Trepp’s CMBS delinquency rate declined sharply again in October to 4.61%, with especially steep drops in lodging and retail. October monthly’s decline of 64 basis points was the largest since February 2021, according to Trepp.
All property types saw monthly declines in CMBS delinquencies, although the drops were comparatively modest for office, multifamily and, especially, industrial. Retail CMBS late-pays declined 136 bps to 8.79%, while for lodging the drop was 141 bps to 10.04%. A year ago, delinquencies for both sectors were well into double-digit territory.
The percentage of specially serviced loans fell to 7.17% in October from 7.49% in September. For lodging loans, 16.17% were in special servicing, a 67-bp monthly decline. For retail loans, 13.68% were in that category, a drop of 33 bps in October.
The all-time high for CMBS delinquencies was 10.34% in July 2012, according to Trepp. That rate was nearly matched in June 2020.
- ◦Financing
