US CMBS deliquency rate hits snag

The US CMBS delinquency rate hit a bit of a snag in March after falling four consecutive months. The rate stayed at 5.58%, on par with February, according to research and data firm Trepp.

The US CMBS delinquency rate hit a bit of a snag in March after falling four consecutive months.

The rate stayed at 5.58%, on par with February, according to research and data firm Trepp.

Nearly $1.1bn in loans became newly delinquent, putting 22 basis points of upward pressure on the rate.

The culprit: increasing rates among industrial, multifamily and retail properties.

The rate among industrial properties spiked 29bps to 7.68%; retail properties rose 13bps to 5.51%; and multifamily assets grew by 8bps to 8.73%.

However, the hotel and office sectors improved. The rate among hotels dropped 31bps for hotels, to 4.2%; and 8bps, among the office sector, to 6.06%.

Properties with newly delinquent loans included the 390 Park Avenue office building in New York City, the Vista Ridge Mall in Lewisville, Texas and the Collin Creek Mall in Plano, Texas.

Despite the setback, the rate is still 96bps lower than a year ago.

There are currently $29.4bn in delinquent loans (excluding loans that are past their balloon date but current on their interest payments).

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