National + Distressed Assets | June 7, 2021

CMBS 2.0 has fared better than deals that were originated during the GFC.

CRE Loan Delinquencies Reach Lowest Levels of Pandemic

Delinquency rates for mortgages backed by commercial and multifamily properties continue to decline, according to two reports by the Mortgage Bankers Association (MBA).

MBA’s Commercial Real Estate Finance Loan Performance Survey for May found delinquencies at their lowest levels of the pandemic, while the first-quarter Commercial/Multifamily Delinquency Report similarly charted broad-based declines.

“Pockets of elevated stress remain in loans backed by lodging and retail properties, driven by loans in the later stages of delinquency and foreclosure or REO,” said Jamie Woodwell, MBA’s VP of commercial real estate research. “Quarterly measures of delinquency rates between last year’s Q4 and this year’s Q1 show a drop in distress across nearly every capital source.”

Hotel loan delinquencies ended May at 20.0%, down two percentage points from April. Retail delinquencies rose two percentage points to 9.5%. The concentration of hotel and retail loans means CMBS delinquency rates are higher than other capital sources.

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Inside The Story

MBA’s Woodwell

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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