NEW YORK CITY—Monthly declines in the delinquency rate for CMBS have now made it four in a row, with Trepp LLC reporting a 19-basis point drop from September's reading of 5.4%. Improvements were registered for all five major property types, according to Trepp data, and year-to-date delinquency levels are lower than the year-end 2016 rate for the first time in 2017.
Trepp notes that following a post-recession low of 4.15% in February '16, the late-pay rate for CMBS moved up in 13 of the 16 months between March of last year and June of this year. However, according to Trepp's latest report, “now that the dreaded 'wave of maturities' has passed, delinquency levels have receded as well.”
October's decline in the CMBS delinquency rate to 5.21% marked the second-biggest monthly drop over the past 19 months. The October reading is just 23 bps points higher than the year-ago level, and two basis points lower YTD.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
