Will CMBS Revival Stall in 2013?

ATLANTA-After falling only twice in 2012, the CMBS delinquency rate started the new year with its first monthly decline, according to Standard & Poor’s. Should investors be worried about a stalled CMBS revival in 2013? Not necessarily.

By property type, the delinquency rate fell for multifamily, office and lodging, though it rose for industrial and retail. In fact, S&P reports, retail continues to be the only property type with a delinquency rate in the single digits, ending January at 8.09% compared with 7.97% in December. In 2012, the retail delinquency rate averaged 7.89%.