National + Distressed Assets | August 25, 2023

KBRA: CMBS Delinquencies Top 4% with 23-bp Monthly Increase

The delinquency rate among U.S. CMBS rated by Kroll Bond Rating Agency (KBRA) rose 23 basis points in August, reaching 4.16%. The monthly increased followed July’s 34-bp increase.

However, KBRA said the total delinquent and specially serviced loan rate had a smaller 1-bp monthly increase, reaching 6.45%. Nearly $900 million of last month’s $18.1 billion of specially serviced loans were returned to the master servicer or liquidated, which helped keep the overall rate in line with last month.

In August, CMBS loans totaling $1.8 billion were either transferred to special servicing or became newly delinquent, with 32.8% ($603.9 million) of that tally due to imminent or actual maturity default.

Office continues to have the highest exposure, accounting for 41.4% ($762.3 million) of the newly specially serviced and newly delinquent loans, said KBRA. Retail came in second at 26.6% ($489.1 million), and mixed-use was third at 15.4% ($283.8 million).

Connect

Inside The Story

KBRA

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).

Order Reprints