The US CMBS delinquency rate worsened in December, bumping up four basis points to 5.17 percent, after three straight months of improvement, according to data and research firm Trepp.
The rate is still 58 bps lower than last year’s final level of 5.75 percent, however.
More than $1.6 billion in loans became newly delinquent in December, putting 32 basis points of upward pressure on the delinquency rate. But $450 million in loans were cured last month, pushing delinquencies down nine bps; and previously delinquent loans that were paid off with a loss or at par totaled almost $1.1 billion, adding 22 basis points of downward pressure.
There are currently $26.4 billion in delinquent loans, excluding those that are past their balloon date but current on interest payments. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 5.00 percent, two basis points lower for the month.
Lodging remains the best performing major property type; its rate moved up seven basis points to 2.82 percent, up 195 basis points year-over-year. Multifamily remained the worst performer, its delinquency rate increasing 13 basis points to 8.28 percent.
Meanwhile, the industrial delinquency rate dropped 26 bps to 5.73 percent; the office delinquency rate inched up six basis points to 5.79 percent; and the retail delinquency rate jumped 12 bps to 5.76%.