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CMBS Delinquencies Spike in June; Near 2012 Peak
CMBS delinquencies climbed 317 basis points to 10.32% in June, Trepp reported. The percentage of securitized commercial mortgages in arrears is now close to the all-time high of 10.34% set in July 2012.
For so-called CMBS 2.0 loans, June’s delinquency rate was 9.36%, up 840 bps year-over-year. For legacy CMBS loans, June delinquencies reached 46.45%.
By property type, industrial fared best with a 25-bp drop to 1.57%, while lodging posted the worst performance at 24.3% delinquency. Multifamily delinquencies rose four bps to 3.29%, office was up 26 bps to 2.66% and retail spiked 793 bps to 18.07%.
Trepp said the delinquency numbers could be headed still higher in July. That’s because 4.1% of loans by balance missed the June payment but remained less than 30 days delinquent. That percentage of loans in or beyond grace period, but not yet delinquent, has fallen from 8.1% in April and 7.6% in May.
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