US CMBS delinquency rate jumps in March after dramatic plunge

Following a more than 100 basis point (bps) plunge in January and February combined, the US CMBS delinquency rate jumped up 7 bps to 4.22 percent in March, according to Trepp.

Following a more than 100 basis point (bps) plunge in January and February combined, the US CMBS delinquency rate jumped up 7 bps to 4.22 percent in March, according to Trepp.

The rate had dropped 20 bps in February after falling 82 bps in January thanks in large part to the payoff of the $3 billion Stuyvesant Town-Peter Cooper Village loan.

The rate is still 136 bps lower than the year-ago level of 5.58 percent and 612 bps lower than the 10.34 percent all-time high from July 2012.

In March, CMBS loans that were previously delinquent but paid off with a loss or at par totaled over $700 million, helping to move the rate down by 15 bps; and over $600 million in loans were cured last month, pushing delinquencies lower by another 12 basis points. But about $1.7 billion in loans became newly delinquent, putting 33 bps of upward pressure on the rate.

There are currently $21.2 billion in delinquent loans, excluding loans that are past their balloon date but current on interest payments. The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is 4.06 percent, unchanged for the month.

The industrial delinquency rate inched up five basis points to 5.91 percent; office jumped 25 bps to 5.23 percent; retail fell 14 bps 5.33 percent; lodging moved up 16 bps to 2.76 percent; and multifamily remained the best performer, falling 3 bps to 2.34 percent.

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