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CMBS Delinquency Rate Increases, First Time in Six Months
The CMBS Delinquency Rate inched one basis point higher to 3.42% in October, according to research by Trepp. That is the first rate increase in six months, and just the second in the last 16 months.
Trepp’s Manus Clancy notes, “Despite the marginal increase, the delinquency reading is at its second-lowest point since the financial crisis. There was also a silver lining, as rates for four of the five major property types fell last month.”
The October 2018 rate was 179 basis points lower than the year-ago level. Year-to-date, the reading has fallen 147 basis points, reports Trepp. The post-crisis low of 3.41% was set last month. The all-time high of 10.34% was registered in July 2012.
The largest rate drop belonged to the lodging sector, which fell 29 basis points to 1.98%. Notable improvement was observed in the industrial segment, thanks to a 17-basis-point slide. Trepp says, Industrial delinquencies now make up just 2.81% of the sector’s outstanding debt. The retail segment was the only property type with a month-over-month rate increase, with a reading that climbed 38 basis points to 5.39%.
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