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California  + Finance  | 

Morningstar: CMBS Delinquency Rate Inches Up

Morningstar Credit Ratings’ March commercial mortgage-backed securities (CMBS) report reveals that the delinquency rate inched up to 2.35%, after receding to a post-crisis low last month. That was a modest 3 basis points increase from February, but is 70 basis points lower than it was a year ago.

With steady new issuance volume pushing the outstanding balance of CMBS loans, and special servicers actively resolving or liquidating assets, Morningstar researchers believe the delinquency rate will hold below 3% for the rest of the year.

Delinquencies from deals issued from 2010 through 2018 remain a small portion of the total, representing just 0.34% of the CMBS universe, while delinquent pre-crisis loans account for 2.01% of the CMBS universe.

The payoff rate of maturing loans in CMBS dipped below 75% for the second time this year, declining to 74.3% in March from 87.3% in February. Morningstar anticipates that the maturity payoff rate will rebound and finish the year in the 80% to 85% range, as most of the remaining maturing loans have strong metrics.

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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