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February CMBS Delinquency Rate Plummets
Research by Trepp reveals that the CMBS delinquency rate dropped 32 basis points last month from its reading in January 2018. The delinquency rate for U.S. commercial real estate loans in CMBS is now 4.51%.
The rate has declined every month since June 2017. As the Wall of Maturities window closed last year, Trepp predicted declines. Trepp believes further reductions are likely in store for the next few months.
Since June 2017, the Trepp CMBS Delinquency Rate has fallen by 124 basis points.
The February 2018 rate is 80 basis points lower than the year-ago level.The rate is lower by 38 basis points year-to-date.
– Nearly $600 million in loans became newly delinquent in February, putting 13 basis points of upward pressure on the delinquency rate
– More than $800 million in notes were cured last month, reducing the delinquency rate by 20 basis points
– More than $700 million in previously delinquent CMBS debt was resolved with a loss or at par in February
– Delinquency reading for hotel loans plunged 128 basis points to 3.23%
– Multifamily delinquency reading moved up 32 basis points to 2.40%; apartment loans remain the best performing major property type
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